Correlation Between Ironnet and Affirm Holdings
Can any of the company-specific risk be diversified away by investing in both Ironnet and Affirm Holdings 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 Ironnet and Affirm Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ironnet and Affirm Holdings, you can compare the effects of market volatilities on Ironnet and Affirm Holdings 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 Ironnet with a short position of Affirm Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ironnet and Affirm Holdings.
Diversification Opportunities for Ironnet and Affirm Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ironnet and Affirm is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ironnet and Affirm Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affirm Holdings and Ironnet 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 Ironnet are associated (or correlated) with Affirm Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affirm Holdings has no effect on the direction of Ironnet i.e., Ironnet and Affirm Holdings go up and down completely randomly.
Pair Corralation between Ironnet and Affirm Holdings
If you would invest 3,941 in Affirm Holdings on September 2, 2024 and sell it today you would earn a total of 3,060 from holding Affirm Holdings or generate 77.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Ironnet vs. Affirm Holdings
Performance |
| Timeline |
| Ironnet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Affirm Holdings |
Ironnet and Affirm Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ironnet and Affirm Holdings
The main advantage of trading using opposite Ironnet and Affirm Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ironnet position performs unexpectedly, Affirm Holdings 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 Affirm Holdings will offset losses from the drop in Affirm Holdings' long position.| Ironnet vs. GigaCloud Technology Class | Ironnet vs. Alarum Technologies | Ironnet vs. Stem Inc | Ironnet vs. Pagaya Technologies |
| Affirm Holdings vs. Upstart Holdings | Affirm Holdings vs. SoFi Technologies | Affirm Holdings vs. Roblox Corp | Affirm Holdings vs. Robinhood Markets |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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