Correlation Between Automatic Bank and Maytronics

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

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

Diversification Opportunities for Automatic Bank and Maytronics

-0.8

Correlation Coefficient

Automatic Bank  Maytronics

Pay attention - limited upside

The 3 months correlation between Automatic and Maytronics is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Bank Services and Maytronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maytronics and Automatic Bank 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 Automatic Bank Services are associated (or correlated) with Maytronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maytronics has no effect on the direction of Automatic Bank i.e., Automatic Bank and Maytronics go up and down completely randomly.

Pair Corralation between Automatic Bank and Maytronics

Assuming the 90 days trading horizon Automatic Bank Services is expected to generate 0.95 times more return on investment than Maytronics. However, Automatic Bank Services is 1.06 times less risky than Maytronics. It trades about 0.22 of its potential returns per unit of risk. Maytronics is currently generating about -0.14 per unit of risk. If you would invest  227,300  in Automatic Bank Services on December 2, 2024 and sell it today you would earn a total of  71,500  from holding Automatic Bank Services or generate 31.46% return on investment over 90 days.

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

Automatic Bank Services  vs.  Maytronics

Automatic Bank Services

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Automatic Bank Services are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Automatic Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Maytronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maytronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Automatic Bank and Maytronics

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

The idea behind Automatic Bank Services and Maytronics 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.

Check out your portfolio center.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.