Correlation Between Stagwell and AALLN
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By analyzing existing cross correlation between Stagwell and AALLN 475 16 MAR 52, you can compare the effects of market volatilities on Stagwell and AALLN 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 Stagwell with a short position of AALLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and AALLN.
Diversification Opportunities for Stagwell and AALLN
Very good diversification
The 3 months correlation between Stagwell and AALLN is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and AALLN 475 16 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AALLN 475 16 and Stagwell 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 Stagwell are associated (or correlated) with AALLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AALLN 475 16 has no effect on the direction of Stagwell i.e., Stagwell and AALLN go up and down completely randomly.
Pair Corralation between Stagwell and AALLN
Given the investment horizon of 90 days Stagwell is expected to generate 2.86 times more return on investment than AALLN. However, Stagwell is 2.86 times more volatile than AALLN 475 16 MAR 52. It trades about 0.07 of its potential returns per unit of risk. AALLN 475 16 MAR 52 is currently generating about -0.01 per unit of risk. If you would invest 551.00 in Stagwell on September 4, 2024 and sell it today you would earn a total of 253.00 from holding Stagwell or generate 45.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.9% |
| Values | Daily Returns |
Stagwell vs. AALLN 475 16 MAR 52
Performance |
| Timeline |
| Stagwell |
| AALLN 475 16 |
Stagwell and AALLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and AALLN
The main advantage of trading using opposite Stagwell and AALLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, AALLN 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 AALLN will offset losses from the drop in AALLN's long position.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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