Correlation Between Ageagle Aerial and STRC Old
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial and STRC Old 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 STRC Old 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 STRC Old, you can compare the effects of market volatilities on Ageagle Aerial and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and STRC Old.
Diversification Opportunities for Ageagle Aerial and STRC Old
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ageagle and STRC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and STRC Old go up and down completely randomly.
Pair Corralation between Ageagle Aerial and STRC Old
If you would invest 269.00 in Ageagle Aerial Systems on August 27, 2024 and sell it today you would earn a total of 328.00 from holding Ageagle Aerial Systems or generate 121.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. STRC Old
Performance |
| Timeline |
| Ageagle Aerial Systems |
| STRC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ageagle Aerial and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and STRC Old
The main advantage of trading using opposite Ageagle Aerial and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old's long position.| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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