Correlation Between American Vanguard and Cheetah Net

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

By analyzing existing cross correlation between American Vanguard and Cheetah Net Supply, you can compare the effects of market volatilities on American Vanguard and Cheetah Net 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 American Vanguard with a short position of Cheetah Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Vanguard and Cheetah Net.

Diversification Opportunities for American Vanguard and Cheetah Net

-0.19

Correlation Coefficient

American Vanguard  Cheetah Net

Good diversification

The 3 months correlation between American and Cheetah is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding American Vanguard and Cheetah Net Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheetah Net Supply and American Vanguard 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 American Vanguard are associated (or correlated) with Cheetah Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheetah Net Supply has no effect on the direction of American Vanguard i.e., American Vanguard and Cheetah Net go up and down completely randomly.

Pair Corralation between American Vanguard and Cheetah Net

Considering the 90-day investment horizon American Vanguard is expected to generate 0.99 times more return on investment than Cheetah Net. However, American Vanguard is 1.01 times less risky than Cheetah Net. It trades about 0.07 of its potential returns per unit of risk. Cheetah Net Supply is currently generating about -0.3 per unit of risk. If you would invest  444.00  in American Vanguard on December 20, 2024 and sell it today you would earn a total of  55.00  from holding American Vanguard or generate 12.39% return on investment over 90 days.

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

American Vanguard  vs.  Cheetah Net Supply

American Vanguard

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Vanguard are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, American Vanguard exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cheetah Net Supply

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cheetah Net Supply 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 Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with American Vanguard and Cheetah Net

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

The idea behind American Vanguard and Cheetah Net Supply 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.