Correlation Between Cricut and Intevac
Can any of the company-specific risk be diversified away by investing in both Cricut and Intevac 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 Cricut and Intevac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Intevac, you can compare the effects of market volatilities on Cricut and Intevac 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 Cricut with a short position of Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Intevac.
Diversification Opportunities for Cricut and Intevac
Poor diversification
The 3 months correlation between Cricut and Intevac is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and Cricut 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 Cricut Inc are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Cricut i.e., Cricut and Intevac go up and down completely randomly.
Pair Corralation between Cricut and Intevac
Given the investment horizon of 90 days Cricut Inc is expected to generate 1.49 times more return on investment than Intevac. However, Cricut is 1.49 times more volatile than Intevac. It trades about 0.0 of its potential returns per unit of risk. Intevac is currently generating about -0.04 per unit of risk. If you would invest 743.00 in Cricut Inc on August 26, 2024 and sell it today you would lose (233.00) from holding Cricut Inc or give up 31.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cricut Inc vs. Intevac
Performance |
| Timeline |
| Cricut Inc |
| Intevac |
Cricut and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cricut and Intevac
The main advantage of trading using opposite Cricut and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
| Intevac vs. D Wave Quantum | Intevac vs. Rigetti Computing | Intevac vs. Cricut Inc | Intevac vs. Quantum Computing |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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