Correlation Between Aerodrome and Photomyne
Can any of the company-specific risk be diversified away by investing in both Aerodrome and Photomyne 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 Aerodrome and Photomyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerodrome Group and Photomyne, you can compare the effects of market volatilities on Aerodrome and Photomyne 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 Aerodrome with a short position of Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerodrome and Photomyne.
Diversification Opportunities for Aerodrome and Photomyne
Poor diversification
The 3 months correlation between Aerodrome and Photomyne is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aerodrome Group and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne and Aerodrome 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 Aerodrome Group are associated (or correlated) with Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of Aerodrome i.e., Aerodrome and Photomyne go up and down completely randomly.
Pair Corralation between Aerodrome and Photomyne
Assuming the 90 days trading horizon Aerodrome Group is expected to under-perform the Photomyne. In addition to that, Aerodrome is 5.9 times more volatile than Photomyne. It trades about -0.34 of its total potential returns per unit of risk. Photomyne is currently generating about -0.11 per unit of volatility. If you would invest 285,500 in Photomyne on September 4, 2024 and sell it today you would lose (5,300) from holding Photomyne or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerodrome Group vs. Photomyne
Performance |
| Timeline |
| Aerodrome Group |
| Photomyne |
Aerodrome and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerodrome and Photomyne
The main advantage of trading using opposite Aerodrome and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerodrome position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| Aerodrome vs. One Software Technologies | Aerodrome vs. Suny Cellular Communication | Aerodrome vs. Multi Retail Group | Aerodrome vs. B Communications |
| Photomyne vs. Magic Software Enterprises | Photomyne vs. Rapac Communication Infrastructure | Photomyne vs. Millennium Food Tech LP | Photomyne vs. Israel China Biotechnology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |