Correlation Between Indiva and Aterian

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

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

Diversification Opportunities for Indiva and Aterian

0.0

Correlation Coefficient

Indiva  Aterian

Pay attention - limited upside

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

Pair Corralation between Indiva and Aterian

If you would invest  218.00  in Aterian on December 19, 2024 and sell it today you would lose (7.00) from holding Aterian or give up 3.21% of portfolio value over 90 days.

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

Indiva  vs.  Aterian

Indiva

Risk-Adjusted Performance

Very Weak

Over the last 90 days Indiva has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Indiva is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Aterian

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aterian has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Aterian is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Indiva and Aterian

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

The idea behind Indiva and Aterian 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.