Correlation Between Ayima Group and Absolent Group

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

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

Diversification Opportunities for Ayima Group and Absolent Group

0.0

Correlation Coefficient

Ayima Group  Absolent Group

Pay attention - limited upside

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

Pair Corralation between Ayima Group and Absolent Group

If you would invest  332.00  in Ayima Group AB on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Ayima Group AB or generate 0.0% return on investment over 90 days.

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

Ayima Group AB  vs.  Absolent Group AB

Ayima Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ayima Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Ayima Group is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Absolent Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Absolent Group AB 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 comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Ayima Group and Absolent Group

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

The idea behind Ayima Group AB and Absolent Group AB 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.