Correlation Between IPower and ATRenew
Can any of the company-specific risk be diversified away by investing in both IPower and ATRenew 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 IPower and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPower Inc and ATRenew Inc DRC, you can compare the effects of market volatilities on IPower and ATRenew 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 IPower with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPower and ATRenew.
Diversification Opportunities for IPower and ATRenew
Modest diversification
The 3 months correlation between IPower and ATRenew is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and IPower 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 iPower Inc are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of IPower i.e., IPower and ATRenew go up and down completely randomly.
Pair Corralation between IPower and ATRenew
Considering the 90-day investment horizon iPower Inc is expected to under-perform the ATRenew. In addition to that, IPower is 2.51 times more volatile than ATRenew Inc DRC. It trades about -0.29 of its total potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.11 per unit of volatility. If you would invest 262.00 in ATRenew Inc DRC on August 27, 2024 and sell it today you would earn a total of 21.00 from holding ATRenew Inc DRC or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPower Inc vs. ATRenew Inc DRC
Performance |
| Timeline |
| iPower Inc |
| ATRenew Inc DRC |
IPower and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPower and ATRenew
The main advantage of trading using opposite IPower and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPower position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |