Correlation Between AERWINS Technologies and Trimble
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies and Trimble 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 Trimble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Trimble, you can compare the effects of market volatilities on AERWINS Technologies and Trimble 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 Trimble. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Trimble.
Diversification Opportunities for AERWINS Technologies and Trimble
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AERWINS and Trimble is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Trimble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimble 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 Trimble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimble has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Trimble go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Trimble
Given the investment horizon of 90 days AERWINS Technologies is expected to under-perform the Trimble. In addition to that, AERWINS Technologies is 7.85 times more volatile than Trimble. It trades about -0.05 of its total potential returns per unit of risk. Trimble is currently generating about 0.04 per unit of volatility. If you would invest 5,606 in Trimble on November 2, 2024 and sell it today you would earn a total of 1,922 from holding Trimble or generate 34.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 69.23% |
| Values | Daily Returns |
AERWINS Technologies vs. Trimble
Performance |
| Timeline |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Trimble |
AERWINS Technologies and Trimble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AERWINS Technologies and Trimble
The main advantage of trading using opposite AERWINS Technologies and Trimble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies position performs unexpectedly, Trimble 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 Trimble will offset losses from the drop in Trimble's long position.| AERWINS Technologies vs. Scientific Industries | AERWINS Technologies vs. Nanalysis Scientific Corp | AERWINS Technologies vs. DSG Global | AERWINS Technologies vs. Focus Universal |
| Trimble vs. Fortive Corp | Trimble vs. MKS Instruments | Trimble vs. Novanta | Trimble vs. Vishay Precision Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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