Correlation Between AULT Old and Spindletop

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

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

Diversification Opportunities for AULT Old and Spindletop

0.0

Correlation Coefficient

AULT Old  Spindletop

Pay attention - limited upside

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

Pair Corralation between AULT Old and Spindletop

If you would invest  21.00  in AULT Old on October 11, 2024 and sell it today you would earn a total of  0.00  from holding AULT Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

AULT Old  vs.  Spindletop OG

AULT Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AULT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, AULT Old is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Spindletop OG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Spindletop OG 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 basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with AULT Old and Spindletop

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

The idea behind AULT Old and Spindletop OG 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.