Correlation Between Ageagle Aerial and Canaan
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial and Canaan 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 Ageagle Aerial and Canaan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ageagle Aerial Systems and Canaan Inc, you can compare the effects of market volatilities on Ageagle Aerial and Canaan 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 Ageagle Aerial with a short position of Canaan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and Canaan.
Diversification Opportunities for Ageagle Aerial and Canaan
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ageagle and Canaan is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and Canaan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaan Inc and Ageagle Aerial 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 Ageagle Aerial Systems are associated (or correlated) with Canaan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaan Inc has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and Canaan go up and down completely randomly.
Pair Corralation between Ageagle Aerial and Canaan
Given the investment horizon of 90 days Ageagle Aerial Systems is expected to generate 2.77 times more return on investment than Canaan. However, Ageagle Aerial is 2.77 times more volatile than Canaan Inc. It trades about 0.31 of its potential returns per unit of risk. Canaan Inc is currently generating about 0.29 per unit of risk. If you would invest 226.00 in Ageagle Aerial Systems on September 3, 2024 and sell it today you would earn a total of 644.00 from holding Ageagle Aerial Systems or generate 284.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. Canaan Inc
Performance |
| Timeline |
| Ageagle Aerial Systems |
| Canaan Inc |
Ageagle Aerial and Canaan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and Canaan
The main advantage of trading using opposite Ageagle Aerial and Canaan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial position performs unexpectedly, Canaan 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 Canaan will offset losses from the drop in Canaan's long position.| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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