Correlation Between AiMedia Technologies and Global Data
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Global Data 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 Global Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Global Data Centre, you can compare the effects of market volatilities on AiMedia Technologies and Global Data 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 Global Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Global Data.
Diversification Opportunities for AiMedia Technologies and Global Data
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between AiMedia and Global is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Global Data Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Data Centre 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 Global Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Data Centre has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Global Data go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Global Data
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.1 times more return on investment than Global Data. However, AiMedia Technologies is 1.1 times more volatile than Global Data Centre. It trades about 0.07 of its potential returns per unit of risk. Global Data Centre is currently generating about 0.05 per unit of risk. If you would invest 33.00 in AiMedia Technologies on September 19, 2024 and sell it today you would earn a total of 49.00 from holding AiMedia Technologies or generate 148.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Global Data Centre
Performance |
| Timeline |
| AiMedia Technologies |
| Global Data Centre |
AiMedia Technologies and Global Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Global Data
The main advantage of trading using opposite AiMedia Technologies and Global Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Global Data 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 Global Data will offset losses from the drop in Global Data's long position.| AiMedia Technologies vs. Red Hill Iron | AiMedia Technologies vs. Champion Iron | AiMedia Technologies vs. Global Data Centre | AiMedia Technologies vs. Retail Food Group |
| Global Data vs. Hudson Investment Group | Global Data vs. Skycity Entertainment Group | Global Data vs. Infomedia | Global Data vs. AiMedia Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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