Correlation Between Aston Martin and Keen Vision

Can any of the company-specific risk be diversified away by investing in both Aston Martin and Keen Vision 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 Keen Vision 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 Keen Vision Acquisition, you can compare the effects of market volatilities on Aston Martin and Keen Vision 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 Keen Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and Keen Vision.

Diversification Opportunities for Aston Martin and Keen Vision

-0.47

Correlation Coefficient

Aston Martin  Keen Vision

Very good diversification

The 3 months correlation between Aston and Keen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda and Keen Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keen Vision Acquisition 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 Keen Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keen Vision Acquisition has no effect on the direction of Aston Martin i.e., Aston Martin and Keen Vision go up and down completely randomly.

Pair Corralation between Aston Martin and Keen Vision

Assuming the 90 days horizon Aston Martin Lagonda is expected to under-perform the Keen Vision. In addition to that, Aston Martin is 14.86 times more volatile than Keen Vision Acquisition. It trades about -0.08 of its total potential returns per unit of risk. Keen Vision Acquisition is currently generating about 0.13 per unit of volatility. If you would invest  1,099  in Keen Vision Acquisition on December 20, 2024 and sell it today you would earn a total of  21.00  from holding Keen Vision Acquisition or generate 1.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aston Martin Lagonda  vs.  Keen Vision Acquisition

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.

Keen Vision Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keen Vision Acquisition are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Keen Vision is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Aston Martin and Keen Vision

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

The idea behind Aston Martin Lagonda and Keen Vision Acquisition 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.