Correlation Between AVALON TECHNOLOGIES and Man Infraconstructio

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AVALON TECHNOLOGIES and Man Infraconstructio 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 AVALON TECHNOLOGIES and Man Infraconstructio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVALON TECHNOLOGIES LTD and Man Infraconstruction Limited, you can compare the effects of market volatilities on AVALON TECHNOLOGIES and Man Infraconstructio 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 AVALON TECHNOLOGIES with a short position of Man Infraconstructio. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVALON TECHNOLOGIES and Man Infraconstructio.

Diversification Opportunities for AVALON TECHNOLOGIES and Man Infraconstructio

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between AVALON and Man is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AVALON TECHNOLOGIES LTD and Man Infraconstruction Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Infraconstruction and AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES LTD are associated (or correlated) with Man Infraconstructio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Infraconstruction has no effect on the direction of AVALON TECHNOLOGIES i.e., AVALON TECHNOLOGIES and Man Infraconstructio go up and down completely randomly.

Pair Corralation between AVALON TECHNOLOGIES and Man Infraconstructio

Assuming the 90 days trading horizon AVALON TECHNOLOGIES LTD is expected to under-perform the Man Infraconstructio. In addition to that, AVALON TECHNOLOGIES is 1.13 times more volatile than Man Infraconstruction Limited. It trades about -0.6 of its total potential returns per unit of risk. Man Infraconstruction Limited is currently generating about -0.38 per unit of volatility. If you would invest  25,149  in Man Infraconstruction Limited on November 2, 2024 and sell it today you would lose (5,504) from holding Man Infraconstruction Limited or give up 21.89% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AVALON TECHNOLOGIES LTD  vs.  Man Infraconstruction Limited

 Performance 
       Timeline  
AVALON TECHNOLOGIES LTD 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in AVALON TECHNOLOGIES LTD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent essential indicators, AVALON TECHNOLOGIES may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Man Infraconstruction 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Man Infraconstructio is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

AVALON TECHNOLOGIES and Man Infraconstructio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AVALON TECHNOLOGIES and Man Infraconstructio

The main advantage of trading using opposite AVALON TECHNOLOGIES and Man Infraconstructio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVALON TECHNOLOGIES position performs unexpectedly, Man Infraconstructio 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 Man Infraconstructio will offset losses from the drop in Man Infraconstructio's long position.
AVALON TECHNOLOGIES vs. Music Broadcast Limited
AVALON TECHNOLOGIES vs. Sarthak Metals Limited
AVALON TECHNOLOGIES vs. Industrial Investment Trust
AVALON TECHNOLOGIES vs. Computer Age Management
The idea behind AVALON TECHNOLOGIES LTD and Man Infraconstruction Limited 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.
Man Infraconstructio vs. Hathway Cable Datacom
Man Infraconstructio vs. Aarey Drugs Pharmaceuticals
Man Infraconstructio vs. Modi Rubber Limited
Man Infraconstructio vs. One 97 Communications
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Transaction History
View history of all your transactions and understand their impact on performance
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY