Correlation Between Propel Holdings and AirIQ
Can any of the company-specific risk be diversified away by investing in both Propel Holdings and AirIQ 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 Propel Holdings and AirIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Propel Holdings and AirIQ Inc, you can compare the effects of market volatilities on Propel Holdings and AirIQ 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 Propel Holdings with a short position of AirIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Propel Holdings and AirIQ.
Diversification Opportunities for Propel Holdings and AirIQ
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Propel and AirIQ is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Propel Holdings and AirIQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirIQ Inc and Propel Holdings 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 Propel Holdings are associated (or correlated) with AirIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirIQ Inc has no effect on the direction of Propel Holdings i.e., Propel Holdings and AirIQ go up and down completely randomly.
Pair Corralation between Propel Holdings and AirIQ
Assuming the 90 days trading horizon Propel Holdings is expected to generate 0.46 times more return on investment than AirIQ. However, Propel Holdings is 2.16 times less risky than AirIQ. It trades about 0.14 of its potential returns per unit of risk. AirIQ Inc is currently generating about -0.03 per unit of risk. If you would invest 3,535 in Propel Holdings on September 2, 2024 and sell it today you would earn a total of 318.00 from holding Propel Holdings or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Propel Holdings vs. AirIQ Inc
Performance |
| Timeline |
| Propel Holdings |
| AirIQ Inc |
Propel Holdings and AirIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Propel Holdings and AirIQ
The main advantage of trading using opposite Propel Holdings and AirIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Propel Holdings position performs unexpectedly, AirIQ 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 AirIQ will offset losses from the drop in AirIQ's long position.| Propel Holdings vs. Sangoma Technologies Corp | Propel Holdings vs. Vitalhub Corp | Propel Holdings vs. Converge Technology Solutions |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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