Correlation Between AUTHUM INVESTMENT and Shigan Quantum

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

By analyzing existing cross correlation between AUTHUM INVESTMENT INFRASTRUCTU and Shigan Quantum Tech, you can compare the effects of market volatilities on AUTHUM INVESTMENT and Shigan Quantum 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 AUTHUM INVESTMENT with a short position of Shigan Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTHUM INVESTMENT and Shigan Quantum.

Diversification Opportunities for AUTHUM INVESTMENT and Shigan Quantum

-0.3

Correlation Coefficient

AUTHUM INVESTMENT  Shigan Quantum

Very good diversification

The 3 months correlation between AUTHUM and Shigan is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding AUTHUM INVESTMENT INFRASTRUCTU and Shigan Quantum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shigan Quantum Tech and AUTHUM INVESTMENT 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 AUTHUM INVESTMENT INFRASTRUCTU are associated (or correlated) with Shigan Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shigan Quantum Tech has no effect on the direction of AUTHUM INVESTMENT i.e., AUTHUM INVESTMENT and Shigan Quantum go up and down completely randomly.

Pair Corralation between AUTHUM INVESTMENT and Shigan Quantum

Assuming the 90 days trading horizon AUTHUM INVESTMENT INFRASTRUCTU is expected to generate 0.82 times more return on investment than Shigan Quantum. However, AUTHUM INVESTMENT INFRASTRUCTU is 1.22 times less risky than Shigan Quantum. It trades about 0.09 of its potential returns per unit of risk. Shigan Quantum Tech is currently generating about -0.04 per unit of risk. If you would invest  164,600  in AUTHUM INVESTMENT INFRASTRUCTU on October 23, 2024 and sell it today you would earn a total of  23,890  from holding AUTHUM INVESTMENT INFRASTRUCTU or generate 14.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

AUTHUM INVESTMENT INFRASTRUCTU  vs.  Shigan Quantum Tech

AUTHUM INVESTMENT

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AUTHUM INVESTMENT INFRASTRUCTU are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, AUTHUM INVESTMENT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Shigan Quantum Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shigan Quantum Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with AUTHUM INVESTMENT and Shigan Quantum

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

The idea behind AUTHUM INVESTMENT INFRASTRUCTU and Shigan Quantum Tech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.