Correlation Between Automatic Bank and Human Xtensions
Can any of the company-specific risk be diversified away by investing in both Automatic Bank and Human Xtensions 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 Automatic Bank and Human Xtensions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Bank Services and Human Xtensions, you can compare the effects of market volatilities on Automatic Bank and Human Xtensions 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 Automatic Bank with a short position of Human Xtensions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Bank and Human Xtensions.
Diversification Opportunities for Automatic Bank and Human Xtensions
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Automatic and Human is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Bank Services and Human Xtensions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Human Xtensions and Automatic Bank 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 Automatic Bank Services are associated (or correlated) with Human Xtensions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Human Xtensions has no effect on the direction of Automatic Bank i.e., Automatic Bank and Human Xtensions go up and down completely randomly.
Pair Corralation between Automatic Bank and Human Xtensions
Assuming the 90 days trading horizon Automatic Bank Services is expected to generate 0.24 times more return on investment than Human Xtensions. However, Automatic Bank Services is 4.17 times less risky than Human Xtensions. It trades about 0.13 of its potential returns per unit of risk. Human Xtensions is currently generating about -0.05 per unit of risk. If you would invest 162,052 in Automatic Bank Services on September 12, 2024 and sell it today you would earn a total of 102,648 from holding Automatic Bank Services or generate 63.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automatic Bank Services vs. Human Xtensions
Performance |
| Timeline |
| Automatic Bank Services |
| Human Xtensions |
Automatic Bank and Human Xtensions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Bank and Human Xtensions
The main advantage of trading using opposite Automatic Bank and Human Xtensions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Bank position performs unexpectedly, Human Xtensions 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 Human Xtensions will offset losses from the drop in Human Xtensions' long position.| Automatic Bank vs. Payment Financial Technologies | Automatic Bank vs. Opal Balance | Automatic Bank vs. B Communications | Automatic Bank vs. Mivne Real Estate |
| Human Xtensions vs. Silver Castle Holdings | Human Xtensions vs. Altshuler Shaham Financial | Human Xtensions vs. Terminal X Online | Human Xtensions vs. Automatic Bank Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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