Correlation Between Cistera Networks and Auddia

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

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

Diversification Opportunities for Cistera Networks and Auddia

0.0

Correlation Coefficient

Cistera Networks  Auddia

Pay attention - limited upside

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

Pair Corralation between Cistera Networks and Auddia

If you would invest  4.00  in Auddia Inc on September 2, 2024 and sell it today you would lose (2.03) from holding Auddia Inc or give up 50.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	76.74%
Values	Daily Returns

Cistera Networks  vs.  Auddia Inc

Cistera Networks

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cistera Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cistera Networks is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Auddia Inc

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Auddia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cistera Networks and Auddia

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

The idea behind Cistera Networks and Auddia 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.