Correlation Between Cricut and PowerFleet,

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

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

Diversification Opportunities for Cricut and PowerFleet,

-0.69

Correlation Coefficient

Cricut  PowerFleet,

Excellent diversification

The 3 months correlation between Cricut and PowerFleet, is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Cricut 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 Cricut Inc are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Cricut i.e., Cricut and PowerFleet, go up and down completely randomly.

Pair Corralation between Cricut and PowerFleet,

Given the investment horizon of 90 days Cricut is expected to generate 6.39 times less return on investment than PowerFleet,. But when comparing it to its historical volatility, Cricut Inc is 1.35 times less risky than PowerFleet,. It trades about 0.03 of its potential returns per unit of risk. PowerFleet, is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  463.00  in PowerFleet, on September 12, 2024 and sell it today you would earn a total of  223.00  from holding PowerFleet, or generate 48.16% return on investment over 90 days.

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

Cricut Inc  vs.  PowerFleet,

Cricut Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cricut Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Cricut may actually be approaching a critical reversion point that can send shares even higher in January 2025.

PowerFleet,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cricut and PowerFleet,

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

The idea behind Cricut Inc and PowerFleet, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.