Correlation Between 00108WAF7 and Smith Micro
Specify exactly 2 symbols:
By analyzing existing cross correlation between AEP TEX INC and Smith Micro Software, you can compare the effects of market volatilities on 00108WAF7 and Smith Micro 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 Smith Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Smith Micro.
Diversification Opportunities for 00108WAF7 and Smith Micro
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 00108WAF7 and Smith is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Smith Micro Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Micro Software 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 Smith Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Micro Software has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Smith Micro go up and down completely randomly.
Pair Corralation between 00108WAF7 and Smith Micro
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 16.65 times more return on investment than Smith Micro. However, 00108WAF7 is 16.65 times more volatile than Smith Micro Software. It trades about 0.12 of its potential returns per unit of risk. Smith Micro Software is currently generating about -0.04 per unit of risk. If you would invest 7,644 in AEP TEX INC on November 2, 2024 and sell it today you would earn a total of 577.00 from holding AEP TEX INC or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 63.77% |
| Values | Daily Returns |
AEP TEX INC vs. Smith Micro Software
Performance |
| Timeline |
| AEP TEX INC |
| Smith Micro Software |
00108WAF7 and Smith Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and Smith Micro
The main advantage of trading using opposite 00108WAF7 and Smith Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, Smith Micro 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 Smith Micro will offset losses from the drop in Smith Micro's long position.The idea behind AEP TEX INC and Smith Micro Software 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.| Smith Micro vs. Dubber Limited | Smith Micro vs. Advanced Health Intelligence | Smith Micro vs. Danavation Technologies Corp | Smith Micro vs. BASE Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |