Correlation Between Avalon Holdings and Moxian

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

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

Diversification Opportunities for Avalon Holdings and Moxian

0.0

Correlation Coefficient

Avalon Holdings  Moxian

Pay attention - limited upside

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

Pair Corralation between Avalon Holdings and Moxian

Considering the 90-day investment horizon Avalon Holdings is expected to generate 0.77 times more return on investment than Moxian. However, Avalon Holdings is 1.3 times less risky than Moxian. It trades about 0.03 of its potential returns per unit of risk. Moxian Inc is currently generating about -0.04 per unit of risk. If you would invest  266.00  in Avalon Holdings on October 25, 2024 and sell it today you would earn a total of  74.00  from holding Avalon Holdings or generate 27.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	24.27%
Values	Daily Returns

Avalon Holdings  vs.  Moxian Inc

Avalon Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Avalon Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Avalon Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Avalon Holdings and Moxian

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

The idea behind Avalon Holdings and Moxian Inc 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.