Correlation Between American Rebel and HEAR Old

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

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

Diversification Opportunities for American Rebel and HEAR Old

0.0

Correlation Coefficient

American Rebel  HEAR Old

Pay attention - limited upside

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

Pair Corralation between American Rebel and HEAR Old

If you would invest  1.05  in American Rebel Holdings on December 22, 2024 and sell it today you would lose (0.01) from holding American Rebel Holdings or give up 0.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

American Rebel Holdings  vs.  HEAR Old

American Rebel Holdings

Risk-Adjusted Performance

OK

Over the last 90 days American Rebel Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating fundamental drivers, American Rebel showed solid returns over the last few months and may actually be approaching a breakup point.

HEAR Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days HEAR Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, HEAR Old is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with American Rebel and HEAR Old

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

The idea behind American Rebel Holdings and HEAR Old 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 Global Correlations module to find global opportunities by holding instruments from different markets.