Correlation Between AimRite Holdings and Dalrada Financial

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

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

Diversification Opportunities for AimRite Holdings and Dalrada Financial

0.0

Correlation Coefficient

AimRite Holdings  Dalrada Financial

Pay attention - limited upside

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

Pair Corralation between AimRite Holdings and Dalrada Financial

If you would invest  6.20  in Dalrada Financial Corp on December 29, 2024 and sell it today you would lose (5.10) from holding Dalrada Financial Corp or give up 82.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

AimRite Holdings Corp  vs.  Dalrada Financial Corp

AimRite Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days AimRite Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, AimRite Holdings is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Dalrada Financial Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dalrada Financial Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Dalrada Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AimRite Holdings and Dalrada Financial

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

The idea behind AimRite Holdings Corp and Dalrada Financial Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.