Correlation Between Aterian and Vinco Ventures
Can any of the company-specific risk be diversified away by investing in both Aterian and Vinco Ventures 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 Aterian and Vinco Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aterian and Vinco Ventures, you can compare the effects of market volatilities on Aterian and Vinco Ventures 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 Aterian with a short position of Vinco Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and Vinco Ventures.
Diversification Opportunities for Aterian and Vinco Ventures
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aterian and Vinco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and Vinco Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinco Ventures and Aterian 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 Aterian are associated (or correlated) with Vinco Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinco Ventures has no effect on the direction of Aterian i.e., Aterian and Vinco Ventures go up and down completely randomly.
Pair Corralation between Aterian and Vinco Ventures
Given the investment horizon of 90 days Aterian is expected to generate 0.51 times more return on investment than Vinco Ventures. However, Aterian is 1.94 times less risky than Vinco Ventures. It trades about -0.05 of its potential returns per unit of risk. Vinco Ventures is currently generating about -0.03 per unit of risk. If you would invest 1,536 in Aterian on November 2, 2024 and sell it today you would lose (1,314) from holding Aterian or give up 85.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.72% |
| Values | Daily Returns |
Aterian vs. Vinco Ventures
Performance |
| Timeline |
| Aterian |
| Vinco Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aterian and Vinco Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aterian and Vinco Ventures
The main advantage of trading using opposite Aterian and Vinco Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aterian position performs unexpectedly, Vinco Ventures 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 Vinco Ventures will offset losses from the drop in Vinco Ventures' long position.The idea behind Aterian and Vinco Ventures 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.| Vinco Ventures vs. Planet Fitness | Vinco Ventures vs. Peloton Interactive | Vinco Ventures vs. Xponential Fitness | Vinco Ventures vs. Madison Square Garden |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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