Correlation Between STF Tactical and Akros Monthly
Can any of the company-specific risk be diversified away by investing in both STF Tactical and Akros Monthly 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 STF Tactical and Akros Monthly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STF Tactical Growth and Akros Monthly Payout, you can compare the effects of market volatilities on STF Tactical and Akros Monthly 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 STF Tactical with a short position of Akros Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of STF Tactical and Akros Monthly.
Diversification Opportunities for STF Tactical and Akros Monthly
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between STF and Akros is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding STF Tactical Growth and Akros Monthly Payout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akros Monthly Payout and STF Tactical 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 STF Tactical Growth are associated (or correlated) with Akros Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akros Monthly Payout has no effect on the direction of STF Tactical i.e., STF Tactical and Akros Monthly go up and down completely randomly.
Pair Corralation between STF Tactical and Akros Monthly
Considering the 90-day investment horizon STF Tactical Growth is expected to generate 1.46 times more return on investment than Akros Monthly. However, STF Tactical is 1.46 times more volatile than Akros Monthly Payout. It trades about 0.09 of its potential returns per unit of risk. Akros Monthly Payout is currently generating about 0.08 per unit of risk. If you would invest 2,288 in STF Tactical Growth on August 27, 2024 and sell it today you would earn a total of 1,172 from holding STF Tactical Growth or generate 51.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
STF Tactical Growth vs. Akros Monthly Payout
Performance |
| Timeline |
| STF Tactical Growth |
| Akros Monthly Payout |
STF Tactical and Akros Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STF Tactical and Akros Monthly
The main advantage of trading using opposite STF Tactical and Akros Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STF Tactical position performs unexpectedly, Akros Monthly 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 Akros Monthly will offset losses from the drop in Akros Monthly's long position.The idea behind STF Tactical Growth and Akros Monthly Payout pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Akros Monthly vs. Bionik Laboratories Corp | Akros Monthly vs. Mobivity Holdings | Akros Monthly vs. Rafina Innovations | Akros Monthly vs. Magellan Gold Corp |
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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