Correlation Between BrainChip Holdings and Aeluma
Can any of the company-specific risk be diversified away by investing in both BrainChip Holdings and Aeluma 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 BrainChip Holdings and Aeluma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrainChip Holdings and Aeluma Inc, you can compare the effects of market volatilities on BrainChip Holdings and Aeluma 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 BrainChip Holdings with a short position of Aeluma. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrainChip Holdings and Aeluma.
Diversification Opportunities for BrainChip Holdings and Aeluma
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BrainChip and Aeluma is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding BrainChip Holdings and Aeluma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeluma Inc and BrainChip 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 BrainChip Holdings are associated (or correlated) with Aeluma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeluma Inc has no effect on the direction of BrainChip Holdings i.e., BrainChip Holdings and Aeluma go up and down completely randomly.
Pair Corralation between BrainChip Holdings and Aeluma
Assuming the 90 days horizon BrainChip Holdings is expected to under-perform the Aeluma. But the otc stock apears to be less risky and, when comparing its historical volatility, BrainChip Holdings is 1.04 times less risky than Aeluma. The otc stock trades about -0.27 of its potential returns per unit of risk. The Aeluma Inc is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Aeluma Inc on November 27, 2024 and sell it today you would lose (102.00) from holding Aeluma Inc or give up 14.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BrainChip Holdings vs. Aeluma Inc
Performance |
| Timeline |
| BrainChip Holdings |
| Aeluma Inc |
BrainChip Holdings and Aeluma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrainChip Holdings and Aeluma
The main advantage of trading using opposite BrainChip Holdings and Aeluma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrainChip Holdings position performs unexpectedly, Aeluma 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 Aeluma will offset losses from the drop in Aeluma's long position.| BrainChip Holdings vs. Skywater Technology | BrainChip Holdings vs. Everspin Technologies | BrainChip Holdings vs. 4DS Memory Limited | BrainChip Holdings vs. Weebit Nano Limited |
| Aeluma vs. Archer Materials Limited | Aeluma vs. Alphawave IP Group | Aeluma vs. BrainChip Holdings | Aeluma vs. Arteris |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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