Correlation Between Auddia and Otonomo Technologies
Can any of the company-specific risk be diversified away by investing in both Auddia and Otonomo Technologies 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 Auddia and Otonomo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auddia Inc and Otonomo Technologies, you can compare the effects of market volatilities on Auddia and Otonomo Technologies 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 Auddia with a short position of Otonomo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auddia and Otonomo Technologies.
Diversification Opportunities for Auddia and Otonomo Technologies
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auddia and Otonomo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and Otonomo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otonomo Technologies and Auddia 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 Auddia Inc are associated (or correlated) with Otonomo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otonomo Technologies has no effect on the direction of Auddia i.e., Auddia and Otonomo Technologies go up and down completely randomly.
Pair Corralation between Auddia and Otonomo Technologies
Assuming the 90 days horizon Auddia Inc is expected to generate 6.12 times more return on investment than Otonomo Technologies. However, Auddia is 6.12 times more volatile than Otonomo Technologies. It trades about 0.13 of its potential returns per unit of risk. Otonomo Technologies is currently generating about 0.08 per unit of risk. If you would invest 20.00 in Auddia Inc on September 3, 2024 and sell it today you would lose (18.03) from holding Auddia Inc or give up 90.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.29% |
| Values | Daily Returns |
Auddia Inc vs. Otonomo Technologies
Performance |
| Timeline |
| Auddia Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Otonomo Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Auddia and Otonomo Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auddia and Otonomo Technologies
The main advantage of trading using opposite Auddia and Otonomo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auddia position performs unexpectedly, Otonomo Technologies 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 Otonomo Technologies will offset losses from the drop in Otonomo Technologies' long position.| Auddia vs. Xponential Fitness | Auddia vs. Anheuser Busch Inbev | Auddia vs. Waste Management | Auddia vs. Merit Medical Systems |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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