Correlation Between AiMedia Technologies and Worley
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Worley 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 Worley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Worley, you can compare the effects of market volatilities on AiMedia Technologies and Worley 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 Worley. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Worley.
Diversification Opportunities for AiMedia Technologies and Worley
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiMedia and Worley is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Worley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worley 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 Worley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worley has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Worley go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Worley
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 2.6 times more return on investment than Worley. However, AiMedia Technologies is 2.6 times more volatile than Worley. It trades about 0.05 of its potential returns per unit of risk. Worley is currently generating about 0.0 per unit of risk. If you would invest 80.00 in AiMedia Technologies on September 3, 2024 and sell it today you would earn a total of 2.00 from holding AiMedia Technologies or generate 2.5% 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. Worley
Performance |
| Timeline |
| AiMedia Technologies |
| Worley |
AiMedia Technologies and Worley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiMedia Technologies and Worley
The main advantage of trading using opposite AiMedia Technologies and Worley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Worley 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 Worley will offset losses from the drop in Worley's long position.| AiMedia Technologies vs. Encounter Resources | AiMedia Technologies vs. Tlou Energy | AiMedia Technologies vs. Superior Resources | AiMedia Technologies vs. Peel Mining |
| Worley vs. Hutchison Telecommunications | Worley vs. Aristocrat Leisure | Worley vs. AiMedia Technologies | Worley vs. K2 Asset Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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