Correlation Between Red Cat and 465685AP0
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By analyzing existing cross correlation between Red Cat Holdings and ITC HLDGS P, you can compare the effects of market volatilities on Red Cat and 465685AP0 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 Red Cat with a short position of 465685AP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Cat and 465685AP0.
Diversification Opportunities for Red Cat and 465685AP0
Pay attention - limited upside
The 3 months correlation between Red and 465685AP0 is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Red Cat Holdings and ITC HLDGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITC HLDGS P and Red Cat 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 Red Cat Holdings are associated (or correlated) with 465685AP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITC HLDGS P has no effect on the direction of Red Cat i.e., Red Cat and 465685AP0 go up and down completely randomly.
Pair Corralation between Red Cat and 465685AP0
Given the investment horizon of 90 days Red Cat Holdings is expected to generate 12.95 times more return on investment than 465685AP0. However, Red Cat is 12.95 times more volatile than ITC HLDGS P. It trades about 0.62 of its potential returns per unit of risk. ITC HLDGS P is currently generating about -0.21 per unit of risk. If you would invest 272.00 in Red Cat Holdings on August 25, 2024 and sell it today you would earn a total of 625.00 from holding Red Cat Holdings or generate 229.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Red Cat Holdings vs. ITC HLDGS P
Performance |
| Timeline |
| Red Cat Holdings |
| ITC HLDGS P |
Red Cat and 465685AP0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Red Cat and 465685AP0
The main advantage of trading using opposite Red Cat and 465685AP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Cat position performs unexpectedly, 465685AP0 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 465685AP0 will offset losses from the drop in 465685AP0's long position.The idea behind Red Cat Holdings and ITC HLDGS P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 465685AP0 vs. AEP TEX INC | 465685AP0 vs. US BANK NATIONAL | 465685AP0 vs. Dupont De Nemours | 465685AP0 vs. The Travelers Companies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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