Correlation Between Badger Meter and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Badger Meter and AERWINS Technologies 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 Badger Meter and AERWINS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Badger Meter and AERWINS Technologies, you can compare the effects of market volatilities on Badger Meter and AERWINS Technologies 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 Badger Meter with a short position of AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Badger Meter and AERWINS Technologies.
Diversification Opportunities for Badger Meter and AERWINS Technologies
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Badger and AERWINS is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Badger Meter and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Badger Meter 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 Badger Meter are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Badger Meter i.e., Badger Meter and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Badger Meter and AERWINS Technologies
Considering the 90-day investment horizon Badger Meter is expected to generate 0.11 times more return on investment than AERWINS Technologies. However, Badger Meter is 9.21 times less risky than AERWINS Technologies. It trades about 0.06 of its potential returns per unit of risk. AERWINS Technologies is currently generating about -0.03 per unit of risk. If you would invest 16,129 in Badger Meter on August 25, 2024 and sell it today you would earn a total of 5,971 from holding Badger Meter or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 67.87% |
| Values | Daily Returns |
Badger Meter vs. AERWINS Technologies
Performance |
| Timeline |
| Badger Meter |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Badger Meter and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Badger Meter and AERWINS Technologies
The main advantage of trading using opposite Badger Meter and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Badger Meter position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.| Badger Meter vs. ESCO Technologies | Badger Meter vs. Novanta | Badger Meter vs. Sensata Technologies Holding | Badger Meter vs. Fortive Corp |
| AERWINS Technologies vs. Scientific Industries | AERWINS Technologies vs. Nanalysis Scientific Corp | AERWINS Technologies vs. DSG Global | AERWINS Technologies vs. Focus Universal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |