Correlation Between Workiva and Aware
Can any of the company-specific risk be diversified away by investing in both Workiva and Aware 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 Workiva and Aware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Aware Inc, you can compare the effects of market volatilities on Workiva and Aware 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 Workiva with a short position of Aware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Aware.
Diversification Opportunities for Workiva and Aware
Average diversification
The 3 months correlation between Workiva and Aware is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Aware Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aware Inc and Workiva 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 Workiva are associated (or correlated) with Aware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aware Inc has no effect on the direction of Workiva i.e., Workiva and Aware go up and down completely randomly.
Pair Corralation between Workiva and Aware
Allowing for the 90-day total investment horizon Workiva is expected to under-perform the Aware. In addition to that, Workiva is 1.37 times more volatile than Aware Inc. It trades about -0.1 of its total potential returns per unit of risk. Aware Inc is currently generating about -0.03 per unit of volatility. If you would invest 167.00 in Aware Inc on November 2, 2024 and sell it today you would lose (4.00) from holding Aware Inc or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workiva vs. Aware Inc
Performance |
| Timeline |
| Workiva |
| Aware Inc |
Workiva and Aware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workiva and Aware
The main advantage of trading using opposite Workiva and Aware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva position performs unexpectedly, Aware 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 Aware will offset losses from the drop in Aware's long position.The idea behind Workiva and Aware Inc 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.| Aware vs. Xcelmobility | Aware vs. Pushfor Investments | Aware vs. CurrentC Power | Aware vs. Agent Information Software |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets |