Correlation Between Rivian Automotive and APAAU
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By analyzing existing cross correlation between Rivian Automotive and APAAU 425 15 JUL 27, you can compare the effects of market volatilities on Rivian Automotive and APAAU 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 Rivian Automotive with a short position of APAAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and APAAU.
Diversification Opportunities for Rivian Automotive and APAAU
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rivian and APAAU is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and APAAU 425 15 JUL 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APAAU 425 15 and Rivian Automotive 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 Rivian Automotive are associated (or correlated) with APAAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APAAU 425 15 has no effect on the direction of Rivian Automotive i.e., Rivian Automotive and APAAU go up and down completely randomly.
Pair Corralation between Rivian Automotive and APAAU
Given the investment horizon of 90 days Rivian Automotive is expected to generate 6.99 times more return on investment than APAAU. However, Rivian Automotive is 6.99 times more volatile than APAAU 425 15 JUL 27. It trades about 0.02 of its potential returns per unit of risk. APAAU 425 15 JUL 27 is currently generating about 0.02 per unit of risk. If you would invest 1,405 in Rivian Automotive on August 31, 2024 and sell it today you would lose (182.00) from holding Rivian Automotive or give up 12.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 29.41% |
| Values | Daily Returns |
Rivian Automotive vs. APAAU 425 15 JUL 27
Performance |
| Timeline |
| Rivian Automotive |
| APAAU 425 15 |
Rivian Automotive and APAAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and APAAU
The main advantage of trading using opposite Rivian Automotive and APAAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive position performs unexpectedly, APAAU 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 APAAU will offset losses from the drop in APAAU's long position.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Mullen Automotive | Rivian Automotive vs. Tesla Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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