Correlation Between Aldel Financial and Neogen
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Neogen 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 Aldel Financial and Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Neogen, you can compare the effects of market volatilities on Aldel Financial and Neogen 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 Aldel Financial with a short position of Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Neogen.
Diversification Opportunities for Aldel Financial and Neogen
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aldel and Neogen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Aldel Financial i.e., Aldel Financial and Neogen go up and down completely randomly.
Pair Corralation between Aldel Financial and Neogen
Given the investment horizon of 90 days Aldel Financial II is expected to generate 0.04 times more return on investment than Neogen. However, Aldel Financial II is 27.07 times less risky than Neogen. It trades about 0.27 of its potential returns per unit of risk. Neogen is currently generating about -0.12 per unit of risk. If you would invest 990.00 in Aldel Financial II on November 2, 2024 and sell it today you would earn a total of 9.00 from holding Aldel Financial II or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.33% |
| Values | Daily Returns |
Aldel Financial II vs. Neogen
Performance |
| Timeline |
| Aldel Financial II |
| Neogen |
Aldel Financial and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Neogen
The main advantage of trading using opposite Aldel Financial and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Aldel Financial vs. WEC Energy Group | Aldel Financial vs. Getty Copper | Aldel Financial vs. East Africa Metals | Aldel Financial vs. Kinetik Holdings |
| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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