Correlation Between Patterson Companies and AIM Energy
Can any of the company-specific risk be diversified away by investing in both Patterson Companies and AIM Energy 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 Patterson Companies and AIM Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patterson Companies and AIM Energy, you can compare the effects of market volatilities on Patterson Companies and AIM Energy 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 Patterson Companies with a short position of AIM Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patterson Companies and AIM Energy.
Diversification Opportunities for Patterson Companies and AIM Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Patterson and AIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Patterson Companies and AIM Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Energy and Patterson Companies 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 Patterson Companies are associated (or correlated) with AIM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Energy has no effect on the direction of Patterson Companies i.e., Patterson Companies and AIM Energy go up and down completely randomly.
Pair Corralation between Patterson Companies and AIM Energy
If you would invest 3,082 in Patterson Companies on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Patterson Companies or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patterson Companies vs. AIM Energy
Performance |
| Timeline |
| Patterson Companies |
| AIM Energy |
Patterson Companies and AIM Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patterson Companies and AIM Energy
The main advantage of trading using opposite Patterson Companies and AIM Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson Companies position performs unexpectedly, AIM Energy 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 AIM Energy will offset losses from the drop in AIM Energy's long position.| Patterson Companies vs. Owens Minor | Patterson Companies vs. Cardinal Health | Patterson Companies vs. McKesson | Patterson Companies vs. Henry Schein |
| AIM Energy vs. Adaro Energy Tbk | AIM Energy vs. Alliance Resource Partners | AIM Energy vs. Indo Tambangraya Megah | AIM Energy vs. Yanzhou Coal Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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