Correlation Between AIB Acquisition and Symrise AG
Can any of the company-specific risk be diversified away by investing in both AIB Acquisition and Symrise AG 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 AIB Acquisition and Symrise AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIB Acquisition Corp and Symrise AG, you can compare the effects of market volatilities on AIB Acquisition and Symrise AG 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 AIB Acquisition with a short position of Symrise AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIB Acquisition and Symrise AG.
Diversification Opportunities for AIB Acquisition and Symrise AG
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIB and Symrise is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AIB Acquisition Corp and Symrise AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symrise AG and AIB Acquisition 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 AIB Acquisition Corp are associated (or correlated) with Symrise AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symrise AG has no effect on the direction of AIB Acquisition i.e., AIB Acquisition and Symrise AG go up and down completely randomly.
Pair Corralation between AIB Acquisition and Symrise AG
If you would invest 1,091 in AIB Acquisition Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding AIB Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
AIB Acquisition Corp vs. Symrise AG
Performance |
| Timeline |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Symrise AG |
AIB Acquisition and Symrise AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIB Acquisition and Symrise AG
The main advantage of trading using opposite AIB Acquisition and Symrise AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIB Acquisition position performs unexpectedly, Symrise AG 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 Symrise AG will offset losses from the drop in Symrise AG's long position.| AIB Acquisition vs. Hooker Furniture | AIB Acquisition vs. Smith Douglas Homes | AIB Acquisition vs. Getty Realty | AIB Acquisition vs. JBG SMITH Properties |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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