Correlation Between American Acquisition and UMAX Group
Can any of the company-specific risk be diversified away by investing in both American Acquisition and UMAX Group 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 American Acquisition and UMAX Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Acquisition Opportunity and UMAX Group Corp, you can compare the effects of market volatilities on American Acquisition and UMAX Group 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 American Acquisition with a short position of UMAX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Acquisition and UMAX Group.
Diversification Opportunities for American Acquisition and UMAX Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and UMAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Acquisition Opportuni and UMAX Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMAX Group Corp and American Acquisition 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 American Acquisition Opportunity are associated (or correlated) with UMAX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMAX Group Corp has no effect on the direction of American Acquisition i.e., American Acquisition and UMAX Group go up and down completely randomly.
Pair Corralation between American Acquisition and UMAX Group
If you would invest 0.01 in UMAX Group Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding UMAX Group Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
American Acquisition Opportuni vs. UMAX Group Corp
Performance |
| Timeline |
| American Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UMAX Group Corp |
American Acquisition and UMAX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Acquisition and UMAX Group
The main advantage of trading using opposite American Acquisition and UMAX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Acquisition position performs unexpectedly, UMAX Group 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 UMAX Group will offset losses from the drop in UMAX Group's long position.The idea behind American Acquisition Opportunity and UMAX Group Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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