Correlation Between Aura FAT and Embrace Change
Can any of the company-specific risk be diversified away by investing in both Aura FAT and Embrace Change 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 Aura FAT and Embrace Change into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura FAT Projects and Embrace Change Acquisition, you can compare the effects of market volatilities on Aura FAT and Embrace Change 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 Aura FAT with a short position of Embrace Change. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura FAT and Embrace Change.
Diversification Opportunities for Aura FAT and Embrace Change
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aura and Embrace is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aura FAT Projects and Embrace Change Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embrace Change Acqui and Aura FAT 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 Aura FAT Projects are associated (or correlated) with Embrace Change. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embrace Change Acqui has no effect on the direction of Aura FAT i.e., Aura FAT and Embrace Change go up and down completely randomly.
Pair Corralation between Aura FAT and Embrace Change
If you would invest 1,274 in Aura FAT Projects on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Aura FAT Projects or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Aura FAT Projects vs. Embrace Change Acquisition
Performance |
Timeline |
Aura FAT Projects |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Embrace Change Acqui |
Aura FAT and Embrace Change Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aura FAT and Embrace Change
The main advantage of trading using opposite Aura FAT and Embrace Change positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura FAT position performs unexpectedly, Embrace Change 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 Embrace Change will offset losses from the drop in Embrace Change's long position.Aura FAT vs. Embrace Change Acquisition | Aura FAT vs. Denali Capital Acquisition | Aura FAT vs. Aimfinity Investment I |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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