Correlation Between Arax Holdings and Looking Glass
Can any of the company-specific risk be diversified away by investing in both Arax Holdings and Looking Glass 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 Arax Holdings and Looking Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arax Holdings Corp and Looking Glass Labs, you can compare the effects of market volatilities on Arax Holdings and Looking Glass 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 Arax Holdings with a short position of Looking Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arax Holdings and Looking Glass.
Diversification Opportunities for Arax Holdings and Looking Glass
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arax and Looking is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Arax Holdings Corp and Looking Glass Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Looking Glass Labs and Arax Holdings 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 Arax Holdings Corp are associated (or correlated) with Looking Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Looking Glass Labs has no effect on the direction of Arax Holdings i.e., Arax Holdings and Looking Glass go up and down completely randomly.
Pair Corralation between Arax Holdings and Looking Glass
If you would invest 140.00 in Arax Holdings Corp on September 2, 2024 and sell it today you would lose (86.00) from holding Arax Holdings Corp or give up 61.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Arax Holdings Corp vs. Looking Glass Labs
Performance |
| Timeline |
| Arax Holdings Corp |
| Looking Glass Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arax Holdings and Looking Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arax Holdings and Looking Glass
The main advantage of trading using opposite Arax Holdings and Looking Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arax Holdings position performs unexpectedly, Looking Glass 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 Looking Glass will offset losses from the drop in Looking Glass' long position.| Arax Holdings vs. AppTech Payments Corp | Arax Holdings vs. Arbe Robotics Ltd | Arax Holdings vs. Argentum 47 | Arax Holdings vs. Internet Infinity |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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