Correlation Between Aterian and MASSIN

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

By analyzing existing cross correlation between Aterian and MASSIN 3067 01 APR 52, you can compare the effects of market volatilities on Aterian and MASSIN 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 Aterian with a short position of MASSIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and MASSIN.

Diversification Opportunities for Aterian and MASSIN

0.35

Correlation Coefficient

Aterian  MASSIN

Weak diversification

The 3 months correlation between Aterian and MASSIN is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and MASSIN 3067 01 APR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASSIN 3067 01 and Aterian 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 Aterian are associated (or correlated) with MASSIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASSIN 3067 01 has no effect on the direction of Aterian i.e., Aterian and MASSIN go up and down completely randomly.

Pair Corralation between Aterian and MASSIN

Given the investment horizon of 90 days Aterian is expected to under-perform the MASSIN. In addition to that, Aterian is 1.22 times more volatile than MASSIN 3067 01 APR 52. It trades about -0.29 of its total potential returns per unit of risk. MASSIN 3067 01 APR 52 is currently generating about 0.09 per unit of volatility. If you would invest  7,188  in MASSIN 3067 01 APR 52 on September 24, 2024 and sell it today you would earn a total of  149.00  from holding MASSIN 3067 01 APR 52 or generate 2.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	57.14%
Values	Daily Returns

Aterian  vs.  MASSIN 3067 01 APR 52

Aterian

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aterian has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

MASSIN 3067 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASSIN 3067 01 APR 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MASSIN is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aterian and MASSIN

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

The idea behind Aterian and MASSIN 3067 01 APR 52 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.