Correlation Between Aldel Financial and STANLN
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By analyzing existing cross correlation between Aldel Financial II and STANLN 6301 09 JAN 29, you can compare the effects of market volatilities on Aldel Financial and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and STANLN.
Diversification Opportunities for Aldel Financial and STANLN
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aldel and STANLN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and STANLN 6301 09 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 6301 09 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 6301 09 has no effect on the direction of Aldel Financial i.e., Aldel Financial and STANLN go up and down completely randomly.
Pair Corralation between Aldel Financial and STANLN
Given the investment horizon of 90 days Aldel Financial is expected to generate 1.32 times less return on investment than STANLN. But when comparing it to its historical volatility, Aldel Financial II is 1.69 times less risky than STANLN. It trades about 0.18 of its potential returns per unit of risk. STANLN 6301 09 JAN 29 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10,278 in STANLN 6301 09 JAN 29 on November 4, 2024 and sell it today you would earn a total of 41.00 from holding STANLN 6301 09 JAN 29 or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Aldel Financial II vs. STANLN 6301 09 JAN 29
Performance |
| Timeline |
| Aldel Financial II |
| STANLN 6301 09 |
Aldel Financial and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and STANLN
The main advantage of trading using opposite Aldel Financial and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Aldel Financial vs. HomeTrust Bancshares | Aldel Financial vs. Mid Atlantic Home Health | Aldel Financial vs. Reservoir Media | Aldel Financial vs. Taylor Morn Home |
| STANLN vs. Cheche Group Class | STANLN vs. Reservoir Media | STANLN vs. Imax Corp | STANLN vs. Zoom Video Communications |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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