Correlation Between AiMedia Technologies and Boss Energy
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Boss Energy 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 Boss Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Boss Energy Limited, you can compare the effects of market volatilities on AiMedia Technologies and Boss Energy 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 Boss Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Boss Energy.
Diversification Opportunities for AiMedia Technologies and Boss Energy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AiMedia and Boss is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Boss Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boss Energy Limited 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 Boss Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boss Energy Limited has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Boss Energy go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Boss Energy
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.2 times more return on investment than Boss Energy. However, AiMedia Technologies is 1.2 times more volatile than Boss Energy Limited. It trades about 0.06 of its potential returns per unit of risk. Boss Energy Limited is currently generating about 0.03 per unit of risk. If you would invest 34.00 in AiMedia Technologies on September 5, 2024 and sell it today you would earn a total of 45.00 from holding AiMedia Technologies or generate 132.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
AiMedia Technologies vs. Boss Energy Limited
Performance |
| Timeline |
| AiMedia Technologies |
| Boss Energy Limited |
AiMedia Technologies and Boss Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Boss Energy
The main advantage of trading using opposite AiMedia Technologies and Boss Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Boss Energy 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 Boss Energy will offset losses from the drop in Boss Energy's long position.| AiMedia Technologies vs. Pengana Private Equity | AiMedia Technologies vs. PM Capital Global | AiMedia Technologies vs. Wam Leaders | AiMedia Technologies vs. Staude Capital Global |
| Boss Energy vs. Retail Food Group | Boss Energy vs. Bell Financial Group | Boss Energy vs. Qbe Insurance Group | Boss Energy vs. Magellan Financial Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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