Correlation Between Gap, and AULT Old

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

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

Diversification Opportunities for Gap, and AULT Old

0.0

Correlation Coefficient

Gap,  AULT Old

Pay attention - limited upside

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

Pair Corralation between Gap, and AULT Old

If you would invest (100.00) in AULT Old on December 17, 2024 and sell it today you would earn a total of  100.00  from holding AULT Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

The Gap,  vs.  AULT Old

Gap,

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Gap, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

AULT Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gap, and AULT Old

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

The idea behind The Gap, and AULT Old 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.