Correlation Between Arista Power and Aumann AG
Can any of the company-specific risk be diversified away by investing in both Arista Power and Aumann AG 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 Arista Power and Aumann AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arista Power and Aumann AG, you can compare the effects of market volatilities on Arista Power and Aumann AG 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 Arista Power with a short position of Aumann AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arista Power and Aumann AG.
Diversification Opportunities for Arista Power and Aumann AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arista and Aumann is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arista Power and Aumann AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aumann AG and Arista Power 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 Arista Power are associated (or correlated) with Aumann AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aumann AG has no effect on the direction of Arista Power i.e., Arista Power and Aumann AG go up and down completely randomly.
Pair Corralation between Arista Power and Aumann AG
If you would invest 1,300 in Aumann AG on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Aumann AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arista Power vs. Aumann AG
Performance |
| Timeline |
| Arista Power |
| Aumann AG |
Arista Power and Aumann AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arista Power and Aumann AG
The main advantage of trading using opposite Arista Power and Aumann AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arista Power position performs unexpectedly, Aumann AG 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 Aumann AG will offset losses from the drop in Aumann AG's long position.| Arista Power vs. Element Solutions | Arista Power vs. Orion Engineered Carbons | Arista Power vs. Minerals Technologies | Arista Power vs. Ingevity Corp |
| Aumann AG vs. Alfa Laval AB | Aumann AG vs. Arista Power | Aumann AG vs. Atlas Copco AB | Aumann AG vs. American Commerce Solutions |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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