Correlation Between AiMedia Technologies and ABACUS STORAGE
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and ABACUS STORAGE 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 ABACUS STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and ABACUS STORAGE KING, you can compare the effects of market volatilities on AiMedia Technologies and ABACUS STORAGE 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 ABACUS STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and ABACUS STORAGE.
Diversification Opportunities for AiMedia Technologies and ABACUS STORAGE
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AiMedia and ABACUS is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and ABACUS STORAGE KING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABACUS STORAGE KING 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 ABACUS STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABACUS STORAGE KING has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and ABACUS STORAGE go up and down completely randomly.
Pair Corralation between AiMedia Technologies and ABACUS STORAGE
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 7.73 times less return on investment than ABACUS STORAGE. But when comparing it to its historical volatility, AiMedia Technologies is 13.72 times less risky than ABACUS STORAGE. It trades about 0.09 of its potential returns per unit of risk. ABACUS STORAGE KING is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 121.00 in ABACUS STORAGE KING on August 29, 2024 and sell it today you would earn a total of 0.00 from holding ABACUS STORAGE KING or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
AiMedia Technologies vs. ABACUS STORAGE KING
Performance |
| Timeline |
| AiMedia Technologies |
| ABACUS STORAGE KING |
AiMedia Technologies and ABACUS STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and ABACUS STORAGE
The main advantage of trading using opposite AiMedia Technologies and ABACUS STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, ABACUS STORAGE 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 ABACUS STORAGE will offset losses from the drop in ABACUS STORAGE's long position.| AiMedia Technologies vs. PVW Resources | AiMedia Technologies vs. Woolworths | AiMedia Technologies vs. Wesfarmers | AiMedia Technologies vs. Coles Group |
| ABACUS STORAGE vs. Odyssey Energy | ABACUS STORAGE vs. Champion Iron | ABACUS STORAGE vs. Ridley | ABACUS STORAGE vs. Peel Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |