Correlation Between Aerius International and Critical Solutions
Can any of the company-specific risk be diversified away by investing in both Aerius International and Critical Solutions at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aerius International and Critical Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerius International and Critical Solutions, you can compare the effects of market volatilities on Aerius International and Critical Solutions and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aerius International with a short position of Critical Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerius International and Critical Solutions.
Diversification Opportunities for Aerius International and Critical Solutions
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aerius and Critical is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aerius International and Critical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critical Solutions and Aerius International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aerius International are associated (or correlated) with Critical Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critical Solutions has no effect on the direction of Aerius International i.e., Aerius International and Critical Solutions go up and down completely randomly.
Pair Corralation between Aerius International and Critical Solutions
If you would invest 0.17 in Aerius International on November 3, 2024 and sell it today you would earn a total of 0.01 from holding Aerius International or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Aerius International vs. Critical Solutions
Performance |
| Timeline |
| Aerius International |
| Critical Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aerius International and Critical Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerius International and Critical Solutions
The main advantage of trading using opposite Aerius International and Critical Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerius International position performs unexpectedly, Critical Solutions can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Critical Solutions will offset losses from the drop in Critical Solutions' long position.| Aerius International vs. Sack Lunch Productions | Aerius International vs. Potash America | Aerius International vs. Blue Diamond Ventures | Aerius International vs. Daniels Corporate Advisory |
| Critical Solutions vs. VizConnect | Critical Solutions vs. Blue Diamond Ventures | Critical Solutions vs. American Diversified Holdings | Critical Solutions vs. Sgd Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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