Correlation Between American Virtual and SASI Old
Can any of the company-specific risk be diversified away by investing in both American Virtual and SASI Old 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 American Virtual and SASI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Virtual Cloud and SASI Old, you can compare the effects of market volatilities on American Virtual and SASI Old 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 American Virtual with a short position of SASI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Virtual and SASI Old.
Diversification Opportunities for American Virtual and SASI Old
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and SASI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding American Virtual Cloud and SASI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASI Old and American Virtual 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 American Virtual Cloud are associated (or correlated) with SASI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASI Old has no effect on the direction of American Virtual i.e., American Virtual and SASI Old go up and down completely randomly.
Pair Corralation between American Virtual and SASI Old
Assuming the 90 days horizon American Virtual Cloud is expected to generate 13.48 times more return on investment than SASI Old. However, American Virtual is 13.48 times more volatile than SASI Old. It trades about 0.2 of its potential returns per unit of risk. SASI Old is currently generating about -0.09 per unit of risk. If you would invest 1.42 in American Virtual Cloud on November 1, 2024 and sell it today you would lose (0.82) from holding American Virtual Cloud or give up 57.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 58.06% |
| Values | Daily Returns |
American Virtual Cloud vs. SASI Old
Performance |
| Timeline |
| American Virtual Cloud |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SASI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Virtual and SASI Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Virtual and SASI Old
The main advantage of trading using opposite American Virtual and SASI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Virtual position performs unexpectedly, SASI Old 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 SASI Old will offset losses from the drop in SASI Old's long position.| American Virtual vs. Elmos Semiconductor SE | American Virtual vs. MagnaChip Semiconductor | American Virtual vs. Nordic Semiconductor ASA | American Virtual vs. Genfit |
| SASI Old vs. Flint Telecom Group | SASI Old vs. Castellum | SASI Old vs. Datametrex AI Limited | SASI Old vs. TTEC Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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