Correlation Between Aldel Financial and Trio Tech
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Trio Tech 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 Trio Tech 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 Trio Tech International, you can compare the effects of market volatilities on Aldel Financial and Trio Tech 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 Trio Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Trio Tech.
Diversification Opportunities for Aldel Financial and Trio Tech
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aldel and Trio is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Trio Tech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trio Tech International 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 Trio Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trio Tech International has no effect on the direction of Aldel Financial i.e., Aldel Financial and Trio Tech go up and down completely randomly.
Pair Corralation between Aldel Financial and Trio Tech
Given the investment horizon of 90 days Aldel Financial II is expected to generate 0.05 times more return on investment than Trio Tech. However, Aldel Financial II is 19.05 times less risky than Trio Tech. It trades about 0.15 of its potential returns per unit of risk. Trio Tech International is currently generating about -0.18 per unit of risk. If you would invest 990.00 in Aldel Financial II on October 12, 2024 and sell it today you would earn a total of 3.00 from holding Aldel Financial II or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Aldel Financial II vs. Trio Tech International
Performance |
| Timeline |
| Aldel Financial II |
| Trio Tech International |
Aldel Financial and Trio Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Trio Tech
The main advantage of trading using opposite Aldel Financial and Trio Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Trio Tech 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 Trio Tech will offset losses from the drop in Trio Tech's long position.| Aldel Financial vs. Trio Tech International | Aldel Financial vs. Valmont Industries | Aldel Financial vs. CECO Environmental Corp | Aldel Financial vs. Skyline |
| Trio Tech vs. Aehr Test Systems | Trio Tech vs. Camtek | Trio Tech vs. Nova | Trio Tech vs. Axcelis Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |