Correlation Between Quanergy Systems and AERWINS Technologies
Can any of the company-specific risk be diversified away by investing in both Quanergy Systems and AERWINS Technologies 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 Quanergy Systems and AERWINS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanergy Systems and AERWINS Technologies, you can compare the effects of market volatilities on Quanergy Systems and AERWINS Technologies 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 Quanergy Systems with a short position of AERWINS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanergy Systems and AERWINS Technologies.
Diversification Opportunities for Quanergy Systems and AERWINS Technologies
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quanergy and AERWINS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Quanergy Systems 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 Quanergy Systems are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Quanergy Systems i.e., Quanergy Systems and AERWINS Technologies go up and down completely randomly.
Pair Corralation between Quanergy Systems and AERWINS Technologies
If you would invest 2.91 in AERWINS Technologies on August 27, 2024 and sell it today you would lose (2.33) from holding AERWINS Technologies or give up 80.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.39% |
| Values | Daily Returns |
Quanergy Systems vs. AERWINS Technologies
Performance |
| Timeline |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quanergy Systems and AERWINS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanergy Systems and AERWINS Technologies
The main advantage of trading using opposite Quanergy Systems and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanergy Systems position performs unexpectedly, AERWINS Technologies 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 AERWINS Technologies will offset losses from the drop in AERWINS Technologies' long position.| Quanergy Systems vs. Sellas Life Sciences | Quanergy Systems vs. Wingstop | Quanergy Systems vs. Biglari Holdings | Quanergy Systems vs. Spyre Therapeutics |
| AERWINS Technologies vs. Capital Clean Energy | AERWINS Technologies vs. Keurig Dr Pepper | AERWINS Technologies vs. Ultra Clean Holdings | AERWINS Technologies vs. Boston Beer |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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