Correlation Between AiMedia Technologies and Havilah Resources
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Havilah Resources 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 Havilah Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Havilah Resources, you can compare the effects of market volatilities on AiMedia Technologies and Havilah Resources 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 Havilah Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Havilah Resources.
Diversification Opportunities for AiMedia Technologies and Havilah Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AiMedia and Havilah is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Havilah Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havilah Resources 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 Havilah Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havilah Resources has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Havilah Resources go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Havilah Resources
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 0.83 times more return on investment than Havilah Resources. However, AiMedia Technologies is 1.2 times less risky than Havilah Resources. It trades about 0.13 of its potential returns per unit of risk. Havilah Resources is currently generating about 0.04 per unit of risk. If you would invest 28.00 in AiMedia Technologies on September 14, 2024 and sell it today you would earn a total of 57.00 from holding AiMedia Technologies or generate 203.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Havilah Resources
Performance |
| Timeline |
| AiMedia Technologies |
| Havilah Resources |
AiMedia Technologies and Havilah Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Havilah Resources
The main advantage of trading using opposite AiMedia Technologies and Havilah Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Havilah Resources 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 Havilah Resources will offset losses from the drop in Havilah Resources' long position.| AiMedia Technologies vs. Patriot Battery Metals | AiMedia Technologies vs. Nufarm Finance NZ | AiMedia Technologies vs. Group 6 Metals | AiMedia Technologies vs. Catalyst Metals |
| Havilah Resources vs. AiMedia Technologies | Havilah Resources vs. Toys R Us | Havilah Resources vs. Nine Entertainment Co | Havilah Resources vs. MFF Capital Investments |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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