Correlation Between Sharing Economy and Arax Holdings
Can any of the company-specific risk be diversified away by investing in both Sharing Economy and Arax Holdings 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 Sharing Economy and Arax Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharing Economy International and Arax Holdings Corp, you can compare the effects of market volatilities on Sharing Economy and Arax Holdings 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 Sharing Economy with a short position of Arax Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharing Economy and Arax Holdings.
Diversification Opportunities for Sharing Economy and Arax Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharing and Arax is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sharing Economy International and Arax Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arax Holdings Corp and Sharing Economy 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 Sharing Economy International are associated (or correlated) with Arax Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arax Holdings Corp has no effect on the direction of Sharing Economy i.e., Sharing Economy and Arax Holdings go up and down completely randomly.
Pair Corralation between Sharing Economy and Arax Holdings
If you would invest 54.00 in Arax Holdings Corp on November 3, 2024 and sell it today you would lose (21.00) from holding Arax Holdings Corp or give up 38.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Sharing Economy International vs. Arax Holdings Corp
Performance |
| Timeline |
| Sharing Economy Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Arax Holdings Corp |
Sharing Economy and Arax Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharing Economy and Arax Holdings
The main advantage of trading using opposite Sharing Economy and Arax Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharing Economy position performs unexpectedly, Arax Holdings 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 Arax Holdings will offset losses from the drop in Arax Holdings' long position.| Sharing Economy vs. Fuse Science | Sharing Economy vs. Data443 Risk Mitigation | Sharing Economy vs. Smartmetric | Sharing Economy vs. Taoping |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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