Correlation Between 00108WAF7 and Red Cat
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By analyzing existing cross correlation between AEP TEX INC and Red Cat Holdings, you can compare the effects of market volatilities on 00108WAF7 and Red Cat 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 00108WAF7 with a short position of Red Cat. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Red Cat.
Diversification Opportunities for 00108WAF7 and Red Cat
Very good diversification
The 3 months correlation between 00108WAF7 and Red is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Red Cat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Cat Holdings and 00108WAF7 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 AEP TEX INC are associated (or correlated) with Red Cat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Cat Holdings has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Red Cat go up and down completely randomly.
Pair Corralation between 00108WAF7 and Red Cat
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 9.38 times more return on investment than Red Cat. However, 00108WAF7 is 9.38 times more volatile than Red Cat Holdings. It trades about 0.07 of its potential returns per unit of risk. Red Cat Holdings is currently generating about 0.16 per unit of risk. If you would invest 7,420 in AEP TEX INC on November 5, 2024 and sell it today you would earn a total of 801.00 from holding AEP TEX INC or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.29% |
| Values | Daily Returns |
AEP TEX INC vs. Red Cat Holdings
Performance |
| Timeline |
| AEP TEX INC |
| Red Cat Holdings |
00108WAF7 and Red Cat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Red Cat
The main advantage of trading using opposite 00108WAF7 and Red Cat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Red Cat 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 Red Cat will offset losses from the drop in Red Cat's long position.| 00108WAF7 vs. US BANK NATIONAL | 00108WAF7 vs. LightPath Technologies | 00108WAF7 vs. Reliance Global Group | 00108WAF7 vs. Gilat Satellite Networks |
| Red Cat vs. Quantum Computing | Red Cat vs. Rigetti Computing | Red Cat vs. D Wave Quantum | Red Cat vs. AstroNova |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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