Correlation Between Guerrilla and Aeluma
Can any of the company-specific risk be diversified away by investing in both Guerrilla and Aeluma 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 Guerrilla and Aeluma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guerrilla RF and Aeluma Inc, you can compare the effects of market volatilities on Guerrilla and Aeluma 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 Guerrilla with a short position of Aeluma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guerrilla and Aeluma.
Diversification Opportunities for Guerrilla and Aeluma
Pay attention - limited upside
The 3 months correlation between Guerrilla and Aeluma is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guerrilla RF and Aeluma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeluma Inc and Guerrilla 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 Guerrilla RF are associated (or correlated) with Aeluma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeluma Inc has no effect on the direction of Guerrilla i.e., Guerrilla and Aeluma go up and down completely randomly.
Pair Corralation between Guerrilla and Aeluma
Given the investment horizon of 90 days Guerrilla RF is expected to under-perform the Aeluma. In addition to that, Guerrilla is 1.19 times more volatile than Aeluma Inc. It trades about -0.04 of its total potential returns per unit of risk. Aeluma Inc is currently generating about 0.03 per unit of volatility. If you would invest 366.00 in Aeluma Inc on August 29, 2024 and sell it today you would lose (26.00) from holding Aeluma Inc or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guerrilla RF vs. Aeluma Inc
Performance |
| Timeline |
| Guerrilla RF |
| Aeluma Inc |
Guerrilla and Aeluma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guerrilla and Aeluma
The main advantage of trading using opposite Guerrilla and Aeluma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guerrilla position performs unexpectedly, Aeluma 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 Aeluma will offset losses from the drop in Aeluma's long position.| Guerrilla vs. NVIDIA | Guerrilla vs. Intel | Guerrilla vs. Taiwan Semiconductor Manufacturing | Guerrilla vs. Marvell Technology Group |
| Aeluma vs. Archer Materials Limited | Aeluma vs. Alphawave IP Group | Aeluma vs. BrainChip Holdings | Aeluma vs. Arteris |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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