Correlation Between Wishpond Technologies and Automotive Finco
Can any of the company-specific risk be diversified away by investing in both Wishpond Technologies and Automotive Finco 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 Wishpond Technologies and Automotive Finco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wishpond Technologies and Automotive Finco Corp, you can compare the effects of market volatilities on Wishpond Technologies and Automotive Finco 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 Wishpond Technologies with a short position of Automotive Finco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wishpond Technologies and Automotive Finco.
Diversification Opportunities for Wishpond Technologies and Automotive Finco
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wishpond and Automotive is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wishpond Technologies and Automotive Finco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automotive Finco Corp and Wishpond Technologies 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 Wishpond Technologies are associated (or correlated) with Automotive Finco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automotive Finco Corp has no effect on the direction of Wishpond Technologies i.e., Wishpond Technologies and Automotive Finco go up and down completely randomly.
Pair Corralation between Wishpond Technologies and Automotive Finco
Assuming the 90 days trading horizon Wishpond Technologies is expected to under-perform the Automotive Finco. But the stock apears to be less risky and, when comparing its historical volatility, Wishpond Technologies is 1.07 times less risky than Automotive Finco. The stock trades about -0.01 of its potential returns per unit of risk. The Automotive Finco Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Automotive Finco Corp on September 14, 2024 and sell it today you would earn a total of 36.00 from holding Automotive Finco Corp or generate 72.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wishpond Technologies vs. Automotive Finco Corp
Performance |
| Timeline |
| Wishpond Technologies |
| Automotive Finco Corp |
Wishpond Technologies and Automotive Finco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wishpond Technologies and Automotive Finco
The main advantage of trading using opposite Wishpond Technologies and Automotive Finco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wishpond Technologies position performs unexpectedly, Automotive Finco 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 Automotive Finco will offset losses from the drop in Automotive Finco's long position.| Wishpond Technologies vs. Adcore Inc | Wishpond Technologies vs. Emerge Commerce | Wishpond Technologies vs. Quisitive Technology Solutions | Wishpond Technologies vs. DGTL Holdings |
| Automotive Finco vs. Berkshire Hathaway CDR | Automotive Finco vs. JPMorgan Chase Co | Automotive Finco vs. Bank of America | Automotive Finco vs. Alphabet Inc CDR |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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