Correlation Between Bitcoin Depot and Aeries Technology

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

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

Diversification Opportunities for Bitcoin Depot and Aeries Technology

-0.48

Correlation Coefficient

Bitcoin Depot  Aeries Technology

Very good diversification

The 3 months correlation between Bitcoin and Aeries is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Depot and Aeries Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeries Technology and Bitcoin Depot 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 Bitcoin Depot are associated (or correlated) with Aeries Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeries Technology has no effect on the direction of Bitcoin Depot i.e., Bitcoin Depot and Aeries Technology go up and down completely randomly.

Pair Corralation between Bitcoin Depot and Aeries Technology

Considering the 90-day investment horizon Bitcoin Depot is expected to generate 0.72 times more return on investment than Aeries Technology. However, Bitcoin Depot is 1.4 times less risky than Aeries Technology. It trades about 0.06 of its potential returns per unit of risk. Aeries Technology is currently generating about -0.04 per unit of risk. If you would invest  151.00  in Bitcoin Depot on October 6, 2024 and sell it today you would earn a total of  14.00  from holding Bitcoin Depot or generate 9.27% return on investment over 90 days.

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

Bitcoin Depot  vs.  Aeries Technology

Bitcoin Depot

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Depot are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Bitcoin Depot displayed solid returns over the last few months and may actually be approaching a breakup point.

Aeries Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aeries Technology 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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bitcoin Depot and Aeries Technology

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

The idea behind Bitcoin Depot and Aeries Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.