Correlation Between Align Technology and OURGAME INTHOLDL-00005

Can any of the company-specific risk be diversified away by investing in both Align Technology and OURGAME INTHOLDL-00005 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 Align Technology and OURGAME INTHOLDL-00005 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Align Technology and OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on Align Technology and OURGAME INTHOLDL-00005 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 Align Technology with a short position of OURGAME INTHOLDL-00005. Check out your portfolio center. Please also check ongoing floating volatility patterns of Align Technology and OURGAME INTHOLDL-00005.

Diversification Opportunities for Align Technology and OURGAME INTHOLDL-00005

0.0

Correlation Coefficient

Align Technology  OURGAME INTHOLDL-00005

Pay attention - limited upside

The 3 months correlation between Align and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Align Technology and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 and Align Technology 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 Align Technology are associated (or correlated) with OURGAME INTHOLDL-00005. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of Align Technology i.e., Align Technology and OURGAME INTHOLDL-00005 go up and down completely randomly.

Pair Corralation between Align Technology and OURGAME INTHOLDL-00005

Assuming the 90 days horizon Align Technology is expected to under-perform the OURGAME INTHOLDL-00005. But the stock apears to be less risky and, when comparing its historical volatility, Align Technology is 3.69 times less risky than OURGAME INTHOLDL-00005. The stock trades about -0.02 of its potential returns per unit of risk. The OURGAME INTHOLDL 00005 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2.65  in OURGAME INTHOLDL 00005 on October 12, 2024 and sell it today you would lose (1.05) from holding OURGAME INTHOLDL 00005 or give up 39.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.75%
Values	Daily Returns

Align Technology  vs.  OURGAME INTHOLDL 00005

Align Technology

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Align Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Align Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL-00005 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Align Technology and OURGAME INTHOLDL-00005

The main advantage of trading using opposite Align Technology and OURGAME INTHOLDL-00005 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Align Technology position performs unexpectedly, OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005 will offset losses from the drop in OURGAME INTHOLDL-00005's long position.

The idea behind Align Technology and OURGAME INTHOLDL 00005 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.