Correlation Between AiMedia Technologies and Home Consortium
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Home Consortium 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 Home Consortium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Home Consortium, you can compare the effects of market volatilities on AiMedia Technologies and Home Consortium 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 Home Consortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Home Consortium.
Diversification Opportunities for AiMedia Technologies and Home Consortium
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between AiMedia and Home is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Home Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Consortium 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 Home Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Consortium has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Home Consortium go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Home Consortium
Assuming the 90 days trading horizon AiMedia Technologies is expected to under-perform the Home Consortium. In addition to that, AiMedia Technologies is 2.22 times more volatile than Home Consortium. It trades about -0.16 of its total potential returns per unit of risk. Home Consortium is currently generating about -0.21 per unit of volatility. If you would invest 1,018 in Home Consortium on October 28, 2024 and sell it today you would lose (73.00) from holding Home Consortium or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Home Consortium
Performance |
| Timeline |
| AiMedia Technologies |
| Home Consortium |
AiMedia Technologies and Home Consortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Home Consortium
The main advantage of trading using opposite AiMedia Technologies and Home Consortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Home Consortium 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 Home Consortium will offset losses from the drop in Home Consortium's long position.| AiMedia Technologies vs. DY6 Metals | AiMedia Technologies vs. Data3 | AiMedia Technologies vs. National Storage REIT | AiMedia Technologies vs. Austco Healthcare |
| Home Consortium vs. Scentre Group | Home Consortium vs. Vicinity Centres Re | Home Consortium vs. Charter Hall Retail | Home Consortium vs. Cromwell Property 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |