Correlation Between WonderFi Technologies and Auddia
Can any of the company-specific risk be diversified away by investing in both WonderFi Technologies and Auddia 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 WonderFi Technologies and Auddia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WonderFi Technologies and Auddia Inc, you can compare the effects of market volatilities on WonderFi Technologies and Auddia 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 WonderFi Technologies with a short position of Auddia. Check out your portfolio center. Please also check ongoing floating volatility patterns of WonderFi Technologies and Auddia.
Diversification Opportunities for WonderFi Technologies and Auddia
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WonderFi and Auddia is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding WonderFi Technologies and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and WonderFi 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 WonderFi Technologies are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of WonderFi Technologies i.e., WonderFi Technologies and Auddia go up and down completely randomly.
Pair Corralation between WonderFi Technologies and Auddia
Assuming the 90 days horizon WonderFi Technologies is expected to generate 162.21 times less return on investment than Auddia. But when comparing it to its historical volatility, WonderFi Technologies is 27.34 times less risky than Auddia. It trades about 0.03 of its potential returns per unit of risk. Auddia Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3.40 in Auddia Inc on September 2, 2024 and sell it today you would lose (1.43) from holding Auddia Inc or give up 42.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.67% |
| Values | Daily Returns |
WonderFi Technologies vs. Auddia Inc
Performance |
| Timeline |
| WonderFi Technologies |
| Auddia Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
WonderFi Technologies and Auddia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WonderFi Technologies and Auddia
The main advantage of trading using opposite WonderFi Technologies and Auddia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WonderFi Technologies position performs unexpectedly, Auddia 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 Auddia will offset losses from the drop in Auddia's long position.| WonderFi Technologies vs. Waldencast Acquisition Corp | WonderFi Technologies vs. Alkami Technology | WonderFi Technologies vs. ADEIA P | WonderFi Technologies vs. Paycor HCM |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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