Correlation Between Staude Capital and AiMedia Technologies

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

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

Diversification Opportunities for Staude Capital and AiMedia Technologies

0.63

Correlation Coefficient

Staude Capital  AiMedia Technologies

Poor diversification

The 3 months correlation between Staude and AiMedia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Staude Capital Global and AiMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiMedia Technologies and Staude Capital 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 Staude Capital Global are associated (or correlated) with AiMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiMedia Technologies has no effect on the direction of Staude Capital i.e., Staude Capital and AiMedia Technologies go up and down completely randomly.

Pair Corralation between Staude Capital and AiMedia Technologies

Assuming the 90 days trading horizon Staude Capital is expected to generate 7.59 times less return on investment than AiMedia Technologies. But when comparing it to its historical volatility, Staude Capital Global is 3.0 times less risky than AiMedia Technologies. It trades about 0.06 of its potential returns per unit of risk. AiMedia Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  56.00  in AiMedia Technologies on September 5, 2024 and sell it today you would earn a total of  23.00  from holding AiMedia Technologies or generate 41.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Staude Capital Global  vs.  AiMedia Technologies

Staude Capital Global

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Staude Capital Global are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Staude Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

AiMedia Technologies

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AiMedia Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, AiMedia Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Staude Capital and AiMedia Technologies

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

The idea behind Staude Capital Global and AiMedia Technologies 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.