Correlation Between AERWINS Technologies and Microvision
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies and Microvision 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 AERWINS Technologies and Microvision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Microvision, you can compare the effects of market volatilities on AERWINS Technologies and Microvision 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 AERWINS Technologies with a short position of Microvision. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Microvision.
Diversification Opportunities for AERWINS Technologies and Microvision
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AERWINS and Microvision is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Microvision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvision and AERWINS 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 AERWINS Technologies are associated (or correlated) with Microvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvision has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Microvision go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Microvision
Given the investment horizon of 90 days AERWINS Technologies is expected to under-perform the Microvision. In addition to that, AERWINS Technologies is 2.87 times more volatile than Microvision. It trades about -0.07 of its total potential returns per unit of risk. Microvision is currently generating about -0.01 per unit of volatility. If you would invest 241.00 in Microvision on August 28, 2024 and sell it today you would lose (143.00) from holding Microvision or give up 59.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 77.1% |
Values | Daily Returns |
AERWINS Technologies vs. Microvision
Performance |
Timeline |
AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microvision |
AERWINS Technologies and Microvision Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AERWINS Technologies and Microvision
The main advantage of trading using opposite AERWINS Technologies and Microvision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies position performs unexpectedly, Microvision 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 Microvision will offset losses from the drop in Microvision's long position.AERWINS Technologies vs. Scientific Industries | AERWINS Technologies vs. Nanalysis Scientific Corp | AERWINS Technologies vs. DSG Global | AERWINS Technologies vs. Focus Universal |
Microvision vs. Focus Universal | Microvision vs. ESCO Technologies | Microvision vs. Genasys | Microvision vs. Cepton Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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