Correlation Between Ageagle Aerial and Key Tronic
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial and Key Tronic 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 Key Tronic 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 Key Tronic, you can compare the effects of market volatilities on Ageagle Aerial and Key Tronic 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 Key Tronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and Key Tronic.
Diversification Opportunities for Ageagle Aerial and Key Tronic
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ageagle and Key is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and Key Tronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Tronic 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 Key Tronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Tronic has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and Key Tronic go up and down completely randomly.
Pair Corralation between Ageagle Aerial and Key Tronic
Given the investment horizon of 90 days Ageagle Aerial Systems is expected to under-perform the Key Tronic. In addition to that, Ageagle Aerial is 5.07 times more volatile than Key Tronic. It trades about -0.04 of its total potential returns per unit of risk. Key Tronic is currently generating about 0.0 per unit of volatility. If you would invest 587.00 in Key Tronic on August 31, 2024 and sell it today you would lose (33.00) from holding Key Tronic or give up 5.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. Key Tronic
Performance |
| Timeline |
| Ageagle Aerial Systems |
| Key Tronic |
Ageagle Aerial and Key Tronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and Key Tronic
The main advantage of trading using opposite Ageagle Aerial and Key Tronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial position performs unexpectedly, Key Tronic 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 Key Tronic will offset losses from the drop in Key Tronic's long position.| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
| Key Tronic vs. AGM Group Holdings | Key Tronic vs. TransAct Technologies Incorporated | Key Tronic vs. AstroNova | Key Tronic vs. Quantum |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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