Correlation Between Auddia and Generation Income

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

By analyzing existing cross correlation between Auddia Inc and Generation Income Properties, you can compare the effects of market volatilities on Auddia and Generation Income 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 Auddia with a short position of Generation Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auddia and Generation Income.

Diversification Opportunities for Auddia and Generation Income

-0.54

Correlation Coefficient

Auddia  Generation Income

Excellent diversification

The 3 months correlation between Auddia and Generation is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and Generation Income Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Income and Auddia 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 Auddia Inc are associated (or correlated) with Generation Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Income has no effect on the direction of Auddia i.e., Auddia and Generation Income go up and down completely randomly.

Pair Corralation between Auddia and Generation Income

Assuming the 90 days horizon Auddia is expected to generate 1.84 times less return on investment than Generation Income. In addition to that, Auddia is 1.05 times more volatile than Generation Income Properties. It trades about 0.09 of its total potential returns per unit of risk. Generation Income Properties is currently generating about 0.18 per unit of volatility. If you would invest  19.00  in Generation Income Properties on December 2, 2024 and sell it today you would earn a total of  6.00  from holding Generation Income Properties or generate 31.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	43.33%
Values	Daily Returns

Auddia Inc  vs.  Generation Income Properties

Auddia Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Auddia Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.

Generation Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Generation Income Properties are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Generation Income showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Auddia and Generation Income

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

The idea behind Auddia Inc and Generation Income Properties 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..