Correlation Between Avalon Holdings and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Avalon Holdings and ATIF Holdings 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 Holdings and ATIF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalon Holdings and ATIF Holdings, you can compare the effects of market volatilities on Avalon Holdings and ATIF Holdings 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 Holdings with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon Holdings and ATIF Holdings.
Diversification Opportunities for Avalon Holdings and ATIF Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avalon and ATIF is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Avalon Holdings and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Avalon Holdings 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 Holdings are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Avalon Holdings i.e., Avalon Holdings and ATIF Holdings go up and down completely randomly.
Pair Corralation between Avalon Holdings and ATIF Holdings
Considering the 90-day investment horizon Avalon Holdings is expected to generate 0.77 times more return on investment than ATIF Holdings. However, Avalon Holdings is 1.29 times less risky than ATIF Holdings. It trades about 0.21 of its potential returns per unit of risk. ATIF Holdings is currently generating about -0.17 per unit of risk. If you would invest 262.00 in Avalon Holdings on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Avalon Holdings or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avalon Holdings vs. ATIF Holdings
Performance |
| Timeline |
| Avalon Holdings |
| ATIF Holdings |
Avalon Holdings and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalon Holdings and ATIF Holdings
The main advantage of trading using opposite Avalon Holdings and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon Holdings position performs unexpectedly, ATIF Holdings 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.| Avalon Holdings vs. Agilyx AS | Avalon Holdings vs. BQE Water | Avalon Holdings vs. EcoPlus | Avalon Holdings vs. Anaergia |
| ATIF Holdings vs. SPENN Technology AS | ATIF Holdings vs. Arcane Crypto AB | ATIF Holdings vs. OFX Group Ltd | ATIF Holdings vs. Blockmate Ventures |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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