Correlation Between TRADEDOUBLER and AECOM TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and AECOM TECHNOLOGY 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 TRADEDOUBLER and AECOM TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and AECOM TECHNOLOGY, you can compare the effects of market volatilities on TRADEDOUBLER and AECOM TECHNOLOGY 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 TRADEDOUBLER with a short position of AECOM TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and AECOM TECHNOLOGY.
Diversification Opportunities for TRADEDOUBLER and AECOM TECHNOLOGY
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRADEDOUBLER and AECOM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and AECOM TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM TECHNOLOGY and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with AECOM TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM TECHNOLOGY has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and AECOM TECHNOLOGY go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and AECOM TECHNOLOGY
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 2.9 times more return on investment than AECOM TECHNOLOGY. However, TRADEDOUBLER is 2.9 times more volatile than AECOM TECHNOLOGY. It trades about 0.16 of its potential returns per unit of risk. AECOM TECHNOLOGY is currently generating about -0.1 per unit of risk. If you would invest 27.00 in TRADEDOUBLER AB SK on October 13, 2024 and sell it today you would earn a total of 2.00 from holding TRADEDOUBLER AB SK or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. AECOM TECHNOLOGY
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| AECOM TECHNOLOGY |
TRADEDOUBLER and AECOM TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and AECOM TECHNOLOGY
The main advantage of trading using opposite TRADEDOUBLER and AECOM TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, AECOM TECHNOLOGY 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 AECOM TECHNOLOGY will offset losses from the drop in AECOM TECHNOLOGY's long position.| TRADEDOUBLER vs. CyberAgent | TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB |
| AECOM TECHNOLOGY vs. Austevoll Seafood ASA | AECOM TECHNOLOGY vs. TRADEDOUBLER AB SK | AECOM TECHNOLOGY vs. CN MODERN DAIRY | AECOM TECHNOLOGY vs. CARSALESCOM |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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