Correlation Between Advanced Oxygen and Maui Land

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

By analyzing existing cross correlation between Advanced Oxygen Technologies and Maui Land Pineapple, you can compare the effects of market volatilities on Advanced Oxygen and Maui Land 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 Advanced Oxygen with a short position of Maui Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Oxygen and Maui Land.

Diversification Opportunities for Advanced Oxygen and Maui Land

-0.08

Correlation Coefficient

Advanced Oxygen  Maui Land

Good diversification

The 3 months correlation between Advanced and Maui is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Oxygen Technologies and Maui Land Pineapple in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maui Land Pineapple and Advanced Oxygen 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 Advanced Oxygen Technologies are associated (or correlated) with Maui Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maui Land Pineapple has no effect on the direction of Advanced Oxygen i.e., Advanced Oxygen and Maui Land go up and down completely randomly.

Pair Corralation between Advanced Oxygen and Maui Land

Given the investment horizon of 90 days Advanced Oxygen Technologies is expected to generate 7.9 times more return on investment than Maui Land. However, Advanced Oxygen is 7.9 times more volatile than Maui Land Pineapple. It trades about 0.08 of its potential returns per unit of risk. Maui Land Pineapple is currently generating about -0.05 per unit of risk. If you would invest  6.40  in Advanced Oxygen Technologies on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Advanced Oxygen Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Advanced Oxygen Technologies  vs.  Maui Land Pineapple

Advanced Oxygen Tech

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Oxygen Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Advanced Oxygen showed solid returns over the last few months and may actually be approaching a breakup point.

Maui Land Pineapple

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maui Land Pineapple has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Advanced Oxygen and Maui Land

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

The idea behind Advanced Oxygen Technologies and Maui Land Pineapple 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.