Correlation Between Acm Research and Usio

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

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

Diversification Opportunities for Acm Research and Usio

0.01

Correlation Coefficient

Acm Research  Usio

Significant diversification

The 3 months correlation between Acm and Usio is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc and Acm Research 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 Acm Research are associated (or correlated) with Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Acm Research i.e., Acm Research and Usio go up and down completely randomly.

Pair Corralation between Acm Research and Usio

Given the investment horizon of 90 days Acm Research is expected to generate 1.42 times more return on investment than Usio. However, Acm Research is 1.42 times more volatile than Usio Inc. It trades about 0.05 of its potential returns per unit of risk. Usio Inc is currently generating about 0.0 per unit of risk. If you would invest  771.00  in Acm Research on September 20, 2024 and sell it today you would earn a total of  750.00  from holding Acm Research or generate 97.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acm Research  vs.  Usio Inc

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Acm Research is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Acm Research and Usio

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

The idea behind Acm Research and Usio 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.