Correlation Between AERWINS Technologies and Boston Beer
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies and Boston Beer 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 Boston Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Boston Beer, you can compare the effects of market volatilities on AERWINS Technologies and Boston Beer 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 Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Boston Beer.
Diversification Opportunities for AERWINS Technologies and Boston Beer
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AERWINS and Boston is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer 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 Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Boston Beer go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Boston Beer
Assuming the 90 days horizon AERWINS Technologies is expected to generate 11.08 times more return on investment than Boston Beer. However, AERWINS Technologies is 11.08 times more volatile than Boston Beer. It trades about 0.07 of its potential returns per unit of risk. Boston Beer is currently generating about 0.01 per unit of risk. If you would invest 15.00 in AERWINS Technologies on September 13, 2024 and sell it today you would lose (14.42) from holding AERWINS Technologies or give up 96.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
AERWINS Technologies vs. Boston Beer
Performance |
| Timeline |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boston Beer |
AERWINS Technologies and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AERWINS Technologies and Boston Beer
The main advantage of trading using opposite AERWINS Technologies and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer's long position.| AERWINS Technologies vs. Xponential Fitness | AERWINS Technologies vs. Kura Sushi USA | AERWINS Technologies vs. GEN Restaurant Group, | AERWINS Technologies vs. Playa Hotels Resorts |
| Boston Beer vs. Anheuser Busch Inbev | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Heineken NV | Boston Beer vs. Ambev SA ADR |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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