Correlation Between AiMedia Technologies and Microequities Asset
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Microequities Asset 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 Microequities Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Microequities Asset Management, you can compare the effects of market volatilities on AiMedia Technologies and Microequities Asset 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 Microequities Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Microequities Asset.
Diversification Opportunities for AiMedia Technologies and Microequities Asset
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and Microequities is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Microequities Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microequities Asset 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 Microequities Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microequities Asset has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Microequities Asset go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Microequities Asset
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 1.49 times more return on investment than Microequities Asset. However, AiMedia Technologies is 1.49 times more volatile than Microequities Asset Management. It trades about 0.05 of its potential returns per unit of risk. Microequities Asset Management is currently generating about 0.01 per unit of risk. If you would invest 35.00 in AiMedia Technologies on November 9, 2024 and sell it today you would earn a total of 27.00 from holding AiMedia Technologies or generate 77.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiMedia Technologies vs. Microequities Asset Management
Performance |
| Timeline |
| AiMedia Technologies |
| Microequities Asset |
AiMedia Technologies and Microequities Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Microequities Asset
The main advantage of trading using opposite AiMedia Technologies and Microequities Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Microequities Asset 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 Microequities Asset will offset losses from the drop in Microequities Asset's long position.| AiMedia Technologies vs. Event Hospitality and | AiMedia Technologies vs. Data3 | AiMedia Technologies vs. Apiam Animal Health | AiMedia Technologies vs. Flagship Investments |
| Microequities Asset vs. Aneka Tambang Tbk | Microequities Asset vs. Macquarie Group | Microequities Asset vs. Commonwealth Bank | Microequities Asset vs. Commonwealth Bank of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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