Correlation Between GOING PUBL and AAC TECHNOLOGHLDGADR

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Can any of the company-specific risk be diversified away by investing in both GOING PUBL and AAC TECHNOLOGHLDGADR 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 GOING PUBL and AAC TECHNOLOGHLDGADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOING PUBL MEDIA and AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on GOING PUBL and AAC TECHNOLOGHLDGADR 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 GOING PUBL with a short position of AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOING PUBL and AAC TECHNOLOGHLDGADR.

Diversification Opportunities for GOING PUBL and AAC TECHNOLOGHLDGADR

-0.94
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GOING and AAC is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding GOING PUBL MEDIA and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR and GOING PUBL 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 GOING PUBL MEDIA are associated (or correlated) with AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of GOING PUBL i.e., GOING PUBL and AAC TECHNOLOGHLDGADR go up and down completely randomly.

Pair Corralation between GOING PUBL and AAC TECHNOLOGHLDGADR

Assuming the 90 days trading horizon GOING PUBL MEDIA is expected to under-perform the AAC TECHNOLOGHLDGADR. But the stock apears to be less risky and, when comparing its historical volatility, GOING PUBL MEDIA is 2.29 times less risky than AAC TECHNOLOGHLDGADR. The stock trades about -0.04 of its potential returns per unit of risk. The AAC TECHNOLOGHLDGADR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  287.00  in AAC TECHNOLOGHLDGADR on October 12, 2024 and sell it today you would earn a total of  173.00  from holding AAC TECHNOLOGHLDGADR or generate 60.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

GOING PUBL MEDIA  vs.  AAC TECHNOLOGHLDGADR

 Performance 
       Timeline  
GOING PUBL MEDIA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile 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.
AAC TECHNOLOGHLDGADR 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AAC TECHNOLOGHLDGADR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AAC TECHNOLOGHLDGADR reported solid returns over the last few months and may actually be approaching a breakup point.

GOING PUBL and AAC TECHNOLOGHLDGADR Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GOING PUBL and AAC TECHNOLOGHLDGADR

The main advantage of trading using opposite GOING PUBL and AAC TECHNOLOGHLDGADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOING PUBL position performs unexpectedly, AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR will offset losses from the drop in AAC TECHNOLOGHLDGADR's long position.
The idea behind GOING PUBL MEDIA and AAC TECHNOLOGHLDGADR 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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