Correlation Between Duos Technologies and ADEIA P

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

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

Diversification Opportunities for Duos Technologies and ADEIA P

0.07

Correlation Coefficient

Duos Technologies  ADEIA P

Significant diversification

The 3 months correlation between Duos and ADEIA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Duos Technologies Group and ADEIA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADEIA P and Duos Technologies 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 Duos Technologies Group are associated (or correlated) with ADEIA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADEIA P has no effect on the direction of Duos Technologies i.e., Duos Technologies and ADEIA P go up and down completely randomly.

Pair Corralation between Duos Technologies and ADEIA P

Given the investment horizon of 90 days Duos Technologies Group is expected to generate 2.05 times more return on investment than ADEIA P. However, Duos Technologies is 2.05 times more volatile than ADEIA P. It trades about 0.03 of its potential returns per unit of risk. ADEIA P is currently generating about 0.02 per unit of risk. If you would invest  638.00  in Duos Technologies Group on December 27, 2024 and sell it today you would lose (23.00) from holding Duos Technologies Group or give up 3.61% of portfolio value over 90 days.

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

Duos Technologies Group  vs.  ADEIA P

Duos Technologies

Risk-Adjusted Performance

Weak

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

ADEIA P

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ADEIA P are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, ADEIA P is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Duos Technologies and ADEIA P

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

The idea behind Duos Technologies Group and ADEIA P 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.