Correlation Between Canaan and Ageagle Aerial
Can any of the company-specific risk be diversified away by investing in both Canaan and Ageagle Aerial 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 Canaan and Ageagle Aerial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaan Inc and Ageagle Aerial Systems, you can compare the effects of market volatilities on Canaan and Ageagle Aerial 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 Canaan with a short position of Ageagle Aerial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaan and Ageagle Aerial.
Diversification Opportunities for Canaan and Ageagle Aerial
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canaan and Ageagle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and Ageagle Aerial Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageagle Aerial Systems and Canaan 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 Canaan Inc are associated (or correlated) with Ageagle Aerial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageagle Aerial Systems has no effect on the direction of Canaan i.e., Canaan and Ageagle Aerial go up and down completely randomly.
Pair Corralation between Canaan and Ageagle Aerial
Considering the 90-day investment horizon Canaan Inc is expected to generate 0.59 times more return on investment than Ageagle Aerial. However, Canaan Inc is 1.71 times less risky than Ageagle Aerial. It trades about 0.06 of its potential returns per unit of risk. Ageagle Aerial Systems is currently generating about -0.01 per unit of risk. If you would invest 142.00 in Canaan Inc on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Canaan Inc or generate 49.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaan Inc vs. Ageagle Aerial Systems
Performance |
| Timeline |
| Canaan Inc |
| Ageagle Aerial Systems |
Canaan and Ageagle Aerial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaan and Ageagle Aerial
The main advantage of trading using opposite Canaan and Ageagle Aerial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaan position performs unexpectedly, Ageagle Aerial 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 Ageagle Aerial will offset losses from the drop in Ageagle Aerial's long position.| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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