Correlation Between AiMedia Technologies and AUB
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and AUB 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 AUB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and AUB Group, you can compare the effects of market volatilities on AiMedia Technologies and AUB 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 AUB. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and AUB.
Diversification Opportunities for AiMedia Technologies and AUB
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AiMedia and AUB is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and AUB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUB Group 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 AUB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUB Group has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and AUB go up and down completely randomly.
Pair Corralation between AiMedia Technologies and AUB
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the AUB. In addition to that, AiMedia Technologies is 2.8 times more volatile than AUB Group. It trades about -0.08 of its total potential returns per unit of risk. AUB Group is currently generating about -0.05 per unit of volatility. If you would invest 3,131 in AUB Group on November 28, 2024 and sell it today you would lose (81.00) from holding AUB Group or give up 2.59% 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. AUB Group
Performance |
| Timeline |
| AiMedia Technologies |
| AUB Group |
AiMedia Technologies and AUB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and AUB
The main advantage of trading using opposite AiMedia Technologies and AUB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, AUB 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 AUB will offset losses from the drop in AUB's long position.| AiMedia Technologies vs. Insignia Financial | AiMedia Technologies vs. Commonwealth Bank of | AiMedia Technologies vs. Land Homes Group | AiMedia Technologies vs. Latitude Financial Services |
| AUB vs. Aurelia Metals | AUB vs. MetalsGrove Mining | AUB vs. Hutchison Telecommunications | AUB vs. Collins Foods |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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