Correlation Between Amulaire Thermal and Newretail
Can any of the company-specific risk be diversified away by investing in both Amulaire Thermal and Newretail 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 Amulaire Thermal and Newretail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amulaire Thermal Technology and Newretail Co, you can compare the effects of market volatilities on Amulaire Thermal and Newretail 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 Amulaire Thermal with a short position of Newretail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amulaire Thermal and Newretail.
Diversification Opportunities for Amulaire Thermal and Newretail
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amulaire and Newretail is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amulaire Thermal Technology and Newretail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newretail and Amulaire Thermal 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 Amulaire Thermal Technology are associated (or correlated) with Newretail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newretail has no effect on the direction of Amulaire Thermal i.e., Amulaire Thermal and Newretail go up and down completely randomly.
Pair Corralation between Amulaire Thermal and Newretail
Assuming the 90 days trading horizon Amulaire Thermal Technology is expected to generate 0.83 times more return on investment than Newretail. However, Amulaire Thermal Technology is 1.21 times less risky than Newretail. It trades about 0.1 of its potential returns per unit of risk. Newretail Co is currently generating about -0.12 per unit of risk. If you would invest 2,800 in Amulaire Thermal Technology on December 26, 2024 and sell it today you would earn a total of 375.00 from holding Amulaire Thermal Technology or generate 13.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amulaire Thermal Technology vs. Newretail Co
Performance |
Timeline |
Amulaire Thermal Tec |
Newretail |
Amulaire Thermal and Newretail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amulaire Thermal and Newretail
The main advantage of trading using opposite Amulaire Thermal and Newretail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amulaire Thermal position performs unexpectedly, Newretail 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 Newretail will offset losses from the drop in Newretail's long position.Amulaire Thermal vs. E Lead Electronic Co | Amulaire Thermal vs. Jentech Precision Industrial | Amulaire Thermal vs. Yusin Holding Corp | Amulaire Thermal vs. Laster Tech Corp |
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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.
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