Correlation Between Aware and Integrated Ventures

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

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

Diversification Opportunities for Aware and Integrated Ventures

-0.29

Correlation Coefficient

Aware  Integrated Ventures

Very good diversification

The 3 months correlation between Aware and Integrated is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aware Inc and Integrated Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Ventures and Aware 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 Aware Inc are associated (or correlated) with Integrated Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Ventures has no effect on the direction of Aware i.e., Aware and Integrated Ventures go up and down completely randomly.

Pair Corralation between Aware and Integrated Ventures

Given the investment horizon of 90 days Aware Inc is expected to generate 0.58 times more return on investment than Integrated Ventures. However, Aware Inc is 1.72 times less risky than Integrated Ventures. It trades about 0.03 of its potential returns per unit of risk. Integrated Ventures is currently generating about 0.01 per unit of risk. If you would invest  153.00  in Aware Inc on October 27, 2024 and sell it today you would earn a total of  12.00  from holding Aware Inc or generate 7.84% return on investment over 90 days.

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

Aware Inc  vs.  Integrated Ventures

Aware Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aware Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile 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.

Integrated Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Aware and Integrated Ventures

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

The idea behind Aware Inc and Integrated Ventures 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.