Correlation Between American Premium and Ideanomics
Can any of the company-specific risk be diversified away by investing in both American Premium and Ideanomics 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 American Premium and Ideanomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Premium Water and Ideanomics, you can compare the effects of market volatilities on American Premium and Ideanomics 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 American Premium with a short position of Ideanomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Premium and Ideanomics.
Diversification Opportunities for American Premium and Ideanomics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Ideanomics is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding American Premium Water and Ideanomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideanomics and American Premium 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 American Premium Water are associated (or correlated) with Ideanomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideanomics has no effect on the direction of American Premium i.e., American Premium and Ideanomics go up and down completely randomly.
Pair Corralation between American Premium and Ideanomics
Given the investment horizon of 90 days American Premium Water is expected to generate 17.28 times more return on investment than Ideanomics. However, American Premium is 17.28 times more volatile than Ideanomics. It trades about 0.16 of its potential returns per unit of risk. Ideanomics is currently generating about -0.06 per unit of risk. If you would invest 0.08 in American Premium Water on August 27, 2024 and sell it today you would lose (0.07) from holding American Premium Water or give up 87.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.2% |
| Values | Daily Returns |
American Premium Water vs. Ideanomics
Performance |
| Timeline |
| American Premium Water |
| Ideanomics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Premium and Ideanomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Premium and Ideanomics
The main advantage of trading using opposite American Premium and Ideanomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Premium position performs unexpectedly, Ideanomics 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 Ideanomics will offset losses from the drop in Ideanomics' long position.| American Premium vs. First Tractor | American Premium vs. Ag Growth International | American Premium vs. AmeraMex International | American Premium vs. Arts Way Manufacturing Co |
| Ideanomics vs. Deere Company | Ideanomics vs. Caterpillar | Ideanomics vs. Lion Electric Corp | Ideanomics vs. Xos Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |