Correlation Between Aston Martin and Ionet

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

By analyzing existing cross correlation between Aston Martin Lagonda and ionet, you can compare the effects of market volatilities on Aston Martin and Ionet 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 Aston Martin with a short position of Ionet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and Ionet.

Diversification Opportunities for Aston Martin and Ionet

0.25

Correlation Coefficient

Aston Martin  Ionet

Modest diversification

The 3 months correlation between Aston and Ionet is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda and ionet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ionet and Aston Martin 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 Aston Martin Lagonda are associated (or correlated) with Ionet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ionet has no effect on the direction of Aston Martin i.e., Aston Martin and Ionet go up and down completely randomly.

Pair Corralation between Aston Martin and Ionet

Assuming the 90 days horizon Aston Martin Lagonda is expected to generate 0.47 times more return on investment than Ionet. However, Aston Martin Lagonda is 2.11 times less risky than Ionet. It trades about -0.08 of its potential returns per unit of risk. ionet is currently generating about -0.2 per unit of risk. If you would invest  130.00  in Aston Martin Lagonda on December 20, 2024 and sell it today you would lose (24.00) from holding Aston Martin Lagonda or give up 18.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.19%
Values	Daily Returns

Aston Martin Lagonda  vs.  ionet

Aston Martin Lagonda

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aston Martin Lagonda 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 technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ionet

Risk-Adjusted Performance

Very Weak

Over the last 90 days ionet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for ionet shareholders.

Pair Trading with Aston Martin and Ionet

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

The idea behind Aston Martin Lagonda and ionet 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..