Correlation Between Anaergia and Pet Valu

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

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

Diversification Opportunities for Anaergia and Pet Valu

0.09

Correlation Coefficient

Anaergia  Pet Valu

Significant diversification

The 3 months correlation between Anaergia and Pet is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Anaergia and Pet Valu Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pet Valu Holdings and Anaergia 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 Anaergia are associated (or correlated) with Pet Valu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pet Valu Holdings has no effect on the direction of Anaergia i.e., Anaergia and Pet Valu go up and down completely randomly.

Pair Corralation between Anaergia and Pet Valu

Assuming the 90 days trading horizon Anaergia is expected to generate 2.83 times more return on investment than Pet Valu. However, Anaergia is 2.83 times more volatile than Pet Valu Holdings. It trades about -0.07 of its potential returns per unit of risk. Pet Valu Holdings is currently generating about -0.41 per unit of risk. If you would invest  107.00  in Anaergia on December 1, 2024 and sell it today you would lose (6.00) from holding Anaergia or give up 5.61% of portfolio value over 90 days.

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

Anaergia  vs.  Pet Valu Holdings

Anaergia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Anaergia displayed solid returns over the last few months and may actually be approaching a breakup point.

Pet Valu Holdings

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Anaergia and Pet Valu

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

The idea behind Anaergia and Pet Valu Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.