Correlation Between Maven Brands and AYR Strategies

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

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

Diversification Opportunities for Maven Brands and AYR Strategies

0.36

Correlation Coefficient

Maven Brands  AYR Strategies

Weak diversification

The 3 months correlation between Maven and AYR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Maven Brands and AYR Strategies Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYR Strategies Class and Maven Brands 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 Maven Brands are associated (or correlated) with AYR Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYR Strategies Class has no effect on the direction of Maven Brands i.e., Maven Brands and AYR Strategies go up and down completely randomly.

Pair Corralation between Maven Brands and AYR Strategies

If you would invest  55.00  in AYR Strategies Class on October 9, 2024 and sell it today you would lose (1.00) from holding AYR Strategies Class or give up 1.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Maven Brands  vs.  AYR Strategies Class

Maven Brands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maven Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AYR Strategies Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AYR Strategies Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Maven Brands and AYR Strategies

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

The idea behind Maven Brands and AYR Strategies Class 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 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.