Correlation Between Avis Budget and Onyx Acquisition
Can any of the company-specific risk be diversified away by investing in both Avis Budget and Onyx Acquisition 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 Avis Budget and Onyx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avis Budget Group and Onyx Acquisition Co, you can compare the effects of market volatilities on Avis Budget and Onyx Acquisition 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 Avis Budget with a short position of Onyx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avis Budget and Onyx Acquisition.
Diversification Opportunities for Avis Budget and Onyx Acquisition
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Avis and Onyx is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Avis Budget Group and Onyx Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onyx Acquisition and Avis Budget 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 Avis Budget Group are associated (or correlated) with Onyx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onyx Acquisition has no effect on the direction of Avis Budget i.e., Avis Budget and Onyx Acquisition go up and down completely randomly.
Pair Corralation between Avis Budget and Onyx Acquisition
If you would invest 9,920 in Avis Budget Group on September 13, 2024 and sell it today you would lose (6.00) from holding Avis Budget Group or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Avis Budget Group vs. Onyx Acquisition Co
Performance |
| Timeline |
| Avis Budget Group |
| Onyx Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Avis Budget and Onyx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avis Budget and Onyx Acquisition
The main advantage of trading using opposite Avis Budget and Onyx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avis Budget position performs unexpectedly, Onyx Acquisition 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 Onyx Acquisition will offset losses from the drop in Onyx Acquisition's long position.| Avis Budget vs. Hertz Global Hldgs | Avis Budget vs. Ryder System | Avis Budget vs. HE Equipment Services | Avis Budget vs. United Rentals |
| Onyx Acquisition vs. Live Ventures | Onyx Acquisition vs. Loandepot | Onyx Acquisition vs. First Ship Lease | Onyx Acquisition vs. MI Homes |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |