Correlation Between AiMedia Technologies and Apiam Animal
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Apiam Animal 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 AiMedia Technologies and Apiam Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Apiam Animal Health, you can compare the effects of market volatilities on AiMedia Technologies and Apiam Animal 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 AiMedia Technologies with a short position of Apiam Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Apiam Animal.
Diversification Opportunities for AiMedia Technologies and Apiam Animal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AiMedia and Apiam is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Apiam Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apiam Animal Health and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Apiam Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apiam Animal Health has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Apiam Animal go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Apiam Animal
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.48 times more return on investment than Apiam Animal. However, AiMedia Technologies is 1.48 times more volatile than Apiam Animal Health. It trades about -0.02 of its potential returns per unit of risk. Apiam Animal Health is currently generating about -0.38 per unit of risk. 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Apiam Animal Health
Performance |
| Timeline |
| AiMedia Technologies |
| Apiam Animal Health |
AiMedia Technologies and Apiam Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Apiam Animal
The main advantage of trading using opposite AiMedia Technologies and Apiam Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Apiam Animal 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 Apiam Animal will offset losses from the drop in Apiam Animal's long position.| AiMedia Technologies vs. iShares Global Healthcare | AiMedia Technologies vs. Australian Dairy Farms | AiMedia Technologies vs. Adriatic Metals Plc | AiMedia Technologies vs. Australian Agricultural |
| Apiam Animal vs. Pinnacle Investment Management | Apiam Animal vs. Aeon Metals | Apiam Animal vs. Nufarm Finance NZ | Apiam Animal vs. Clime Investment Management |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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