Correlation Between Trend Micro and Afterpay
Can any of the company-specific risk be diversified away by investing in both Trend Micro and Afterpay 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 Trend Micro and Afterpay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trend Micro ADR and Afterpay Limited, you can compare the effects of market volatilities on Trend Micro and Afterpay 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 Trend Micro with a short position of Afterpay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Micro and Afterpay.
Diversification Opportunities for Trend Micro and Afterpay
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trend and Afterpay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trend Micro ADR and Afterpay Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afterpay Limited and Trend Micro 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 Trend Micro ADR are associated (or correlated) with Afterpay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afterpay Limited has no effect on the direction of Trend Micro i.e., Trend Micro and Afterpay go up and down completely randomly.
Pair Corralation between Trend Micro and Afterpay
If you would invest 5,980 in Trend Micro ADR on December 5, 2024 and sell it today you would earn a total of 1,438 from holding Trend Micro ADR or generate 24.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Trend Micro ADR vs. Afterpay Limited
Performance |
Timeline |
Trend Micro ADR |
Afterpay Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Trend Micro and Afterpay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Trend Micro and Afterpay
The main advantage of trading using opposite Trend Micro and Afterpay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Micro position performs unexpectedly, Afterpay 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 Afterpay will offset losses from the drop in Afterpay's long position.Trend Micro vs. Synchronoss Technologies | Trend Micro vs. SolarWinds Corp | Trend Micro vs. Evertec | Trend Micro vs. CSG Systems International |
Afterpay vs. Toro | Afterpay vs. Torm PLC Class | Afterpay vs. Prudential Financial 4125 | Afterpay vs. Cheche Group Class |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
CEOs Directory Screen CEOs from public companies around the world | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |