Correlation Between Apiam Animal and AiMedia Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apiam Animal and AiMedia Technologies 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 Apiam Animal and AiMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apiam Animal Health and AiMedia Technologies, you can compare the effects of market volatilities on Apiam Animal and AiMedia Technologies 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 Apiam Animal with a short position of AiMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apiam Animal and AiMedia Technologies.

Diversification Opportunities for Apiam Animal and AiMedia Technologies

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Apiam and AiMedia is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apiam Animal Health and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Apiam Animal 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 Apiam Animal Health are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Apiam Animal i.e., Apiam Animal and AiMedia Technologies go up and down completely randomly.

Pair Corralation between Apiam Animal and AiMedia Technologies

Assuming the 90 days trading horizon Apiam Animal Health is expected to under-perform the AiMedia Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Apiam Animal Health is 1.48 times less risky than AiMedia Technologies. The stock trades about -0.38 of its potential returns per unit of risk. The AiMedia Technologies is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  86.00  in AiMedia Technologies on September 1, 2024 and sell it today you would lose (4.00) from holding AiMedia Technologies or give up 4.65% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Apiam Animal Health  vs.  AiMedia Technologies

 Performance 
       Timeline  
Apiam Animal Health 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Apiam Animal Health are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Apiam Animal is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
AiMedia Technologies 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in AiMedia Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, AiMedia Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apiam Animal and AiMedia Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apiam Animal and AiMedia Technologies

The main advantage of trading using opposite Apiam Animal and AiMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apiam Animal position performs unexpectedly, AiMedia Technologies 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 AiMedia Technologies will offset losses from the drop in AiMedia Technologies' long position.
The idea behind Apiam Animal Health and AiMedia Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges