Correlation Between AAC TECHNOLOGHLDGADR and Hologic

Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and Hologic 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 AAC TECHNOLOGHLDGADR and Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and Hologic, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and Hologic 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 AAC TECHNOLOGHLDGADR with a short position of Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and Hologic.

Diversification Opportunities for AAC TECHNOLOGHLDGADR and Hologic

0.0

Correlation Coefficient

AAC TECHNOLOGHLDGADR  Hologic

Pay attention - limited upside

The 3 months correlation between AAC and Hologic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and Hologic go up and down completely randomly.

Pair Corralation between AAC TECHNOLOGHLDGADR and Hologic

If you would invest  454.00  in AAC TECHNOLOGHLDGADR on December 19, 2024 and sell it today you would earn a total of  136.00  from holding AAC TECHNOLOGHLDGADR or generate 29.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

AAC TECHNOLOGHLDGADR  vs.  Hologic

AAC TECHNOLOGHLDGADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AAC TECHNOLOGHLDGADR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AAC TECHNOLOGHLDGADR reported solid returns over the last few months and may actually be approaching a breakup point.

Hologic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hologic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hologic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AAC TECHNOLOGHLDGADR and Hologic

The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.

The idea behind AAC TECHNOLOGHLDGADR and Hologic 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.