Correlation Between Distoken Acquisition and Aimei Health
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition and Aimei Health 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 Distoken Acquisition and Aimei Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and Aimei Health Technology, you can compare the effects of market volatilities on Distoken Acquisition and Aimei Health 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 Distoken Acquisition with a short position of Aimei Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Aimei Health.
Diversification Opportunities for Distoken Acquisition and Aimei Health
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Distoken and Aimei is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Aimei Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimei Health Technology and Distoken Acquisition 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 Distoken Acquisition are associated (or correlated) with Aimei Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimei Health Technology has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and Aimei Health go up and down completely randomly.
Pair Corralation between Distoken Acquisition and Aimei Health
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 6.95 times less return on investment than Aimei Health. In addition to that, Distoken Acquisition is 1.13 times more volatile than Aimei Health Technology. It trades about 0.03 of its total potential returns per unit of risk. Aimei Health Technology is currently generating about 0.21 per unit of volatility. If you would invest 1,075 in Aimei Health Technology on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Aimei Health Technology or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Distoken Acquisition vs. Aimei Health Technology
Performance |
| Timeline |
| Distoken Acquisition |
| Aimei Health Technology |
Distoken Acquisition and Aimei Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and Aimei Health
The main advantage of trading using opposite Distoken Acquisition and Aimei Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition position performs unexpectedly, Aimei Health 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 Aimei Health will offset losses from the drop in Aimei Health's long position.| Distoken Acquisition vs. Kulicke and Soffa | Distoken Acquisition vs. Amkor Technology | Distoken Acquisition vs. Marfrig Global Foods | Distoken Acquisition vs. SunOpta |
| Aimei Health vs. Voyager Acquisition Corp | Aimei Health vs. YHN Acquisition I | Aimei Health vs. YHN Acquisition I | Aimei Health vs. CO2 Energy Transition |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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