Correlation Between Alkami Technology and AudioEye
Can any of the company-specific risk be diversified away by investing in both Alkami Technology and AudioEye 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 Alkami Technology and AudioEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkami Technology and AudioEye, you can compare the effects of market volatilities on Alkami Technology and AudioEye 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 Alkami Technology with a short position of AudioEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkami Technology and AudioEye.
Diversification Opportunities for Alkami Technology and AudioEye
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alkami and AudioEye is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alkami Technology and AudioEye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioEye and Alkami Technology 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 Alkami Technology are associated (or correlated) with AudioEye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioEye has no effect on the direction of Alkami Technology i.e., Alkami Technology and AudioEye go up and down completely randomly.
Pair Corralation between Alkami Technology and AudioEye
Given the investment horizon of 90 days Alkami Technology is expected to generate 0.42 times more return on investment than AudioEye. However, Alkami Technology is 2.36 times less risky than AudioEye. It trades about -0.09 of its potential returns per unit of risk. AudioEye is currently generating about -0.1 per unit of risk. If you would invest 3,842 in Alkami Technology on November 3, 2024 and sell it today you would lose (363.00) from holding Alkami Technology or give up 9.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Alkami Technology vs. AudioEye
Performance |
| Timeline |
| Alkami Technology |
| AudioEye |
Alkami Technology and AudioEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkami Technology and AudioEye
The main advantage of trading using opposite Alkami Technology and AudioEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkami Technology position performs unexpectedly, AudioEye 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 AudioEye will offset losses from the drop in AudioEye's long position.| Alkami Technology vs. Agilysys | Alkami Technology vs. ADEIA P | Alkami Technology vs. Paycor HCM | Alkami Technology vs. Paylocity Holdng |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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