Correlation Between Aldel Financial and Stingray
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Aldel Financial and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Stingray.
Diversification Opportunities for Aldel Financial and Stingray
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aldel and Stingray is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Aldel Financial i.e., Aldel Financial and Stingray go up and down completely randomly.
Pair Corralation between Aldel Financial and Stingray
Assuming the 90 days horizon Aldel Financial is expected to generate 6318.0 times less return on investment than Stingray. But when comparing it to its historical volatility, Aldel Financial II is 20.98 times less risky than Stingray. It trades about 0.0 of its potential returns per unit of risk. Stingray Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Stingray Group on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Stingray Group or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aldel Financial II vs. Stingray Group
Performance |
| Timeline |
| Aldel Financial II |
| Stingray Group |
Aldel Financial and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Stingray
The main advantage of trading using opposite Aldel Financial and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Aldel Financial vs. Stepan Company | Aldel Financial vs. Apogee Enterprises | Aldel Financial vs. Sphere Entertainment Co | Aldel Financial vs. Radcom |
| Stingray vs. Summit Materials | Stingray vs. Silo Pharma | Stingray vs. Tandy Leather Factory | Stingray vs. Harmony Gold Mining |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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