Correlation Between Aldel Financial and APPLIED
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By analyzing existing cross correlation between Aldel Financial II and APPLIED MATLS INC, you can compare the effects of market volatilities on Aldel Financial and APPLIED 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 APPLIED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and APPLIED.
Diversification Opportunities for Aldel Financial and APPLIED
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aldel and APPLIED is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and APPLIED MATLS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLIED MATLS INC 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 APPLIED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLIED MATLS INC has no effect on the direction of Aldel Financial i.e., Aldel Financial and APPLIED go up and down completely randomly.
Pair Corralation between Aldel Financial and APPLIED
Assuming the 90 days horizon Aldel Financial is expected to generate 1.65 times less return on investment than APPLIED. But when comparing it to its historical volatility, Aldel Financial II is 1.35 times less risky than APPLIED. It trades about 0.08 of its potential returns per unit of risk. APPLIED MATLS INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,930 in APPLIED MATLS INC on September 13, 2024 and sell it today you would earn a total of 33.00 from holding APPLIED MATLS INC or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aldel Financial II vs. APPLIED MATLS INC
Performance |
| Timeline |
| Aldel Financial II |
| APPLIED MATLS INC |
Aldel Financial and APPLIED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and APPLIED
The main advantage of trading using opposite Aldel Financial and APPLIED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, APPLIED 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 APPLIED will offset losses from the drop in APPLIED's long position.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
| APPLIED vs. Where Food Comes | APPLIED vs. Anterix | APPLIED vs. Joint Stock | APPLIED vs. Cadence Design Systems |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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