Correlation Between Rohm Co and Aeluma
Can any of the company-specific risk be diversified away by investing in both Rohm Co and Aeluma 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 Rohm Co and Aeluma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rohm Co Ltd and Aeluma Inc, you can compare the effects of market volatilities on Rohm Co and Aeluma 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 Rohm Co with a short position of Aeluma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rohm Co and Aeluma.
Diversification Opportunities for Rohm Co and Aeluma
Very good diversification
The 3 months correlation between Rohm and Aeluma is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Rohm Co Ltd and Aeluma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeluma Inc and Rohm Co 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 Rohm Co Ltd are associated (or correlated) with Aeluma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeluma Inc has no effect on the direction of Rohm Co i.e., Rohm Co and Aeluma go up and down completely randomly.
Pair Corralation between Rohm Co and Aeluma
Assuming the 90 days horizon Rohm Co Ltd is expected to under-perform the Aeluma. But the pink sheet apears to be less risky and, when comparing its historical volatility, Rohm Co Ltd is 2.24 times less risky than Aeluma. The pink sheet trades about -0.3 of its potential returns per unit of risk. The Aeluma Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Aeluma Inc on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Aeluma Inc or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rohm Co Ltd vs. Aeluma Inc
Performance |
| Timeline |
| Rohm Co |
| Aeluma Inc |
Rohm Co and Aeluma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rohm Co and Aeluma
The main advantage of trading using opposite Rohm Co and Aeluma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rohm Co position performs unexpectedly, Aeluma 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 Aeluma will offset losses from the drop in Aeluma's long position.| Rohm Co vs. Renesas Electronics | Rohm Co vs. Power Integrations | Rohm Co vs. MACOM Technology Solutions | Rohm Co vs. Renesas Electronics Corp |
| Aeluma vs. Power Integrations | Aeluma vs. MACOM Technology Solutions | Aeluma vs. Intchains Group Limited | Aeluma vs. Vishay Intertechnology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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