Correlation Between Ageagle Aerial and Cricut

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

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

Diversification Opportunities for Ageagle Aerial and Cricut

-0.03

Correlation Coefficient

Ageagle Aerial  Cricut

Good diversification

The 3 months correlation between Ageagle and Cricut is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and Cricut Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cricut Inc and Ageagle Aerial 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 Ageagle Aerial Systems are associated (or correlated) with Cricut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cricut Inc has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and Cricut go up and down completely randomly.

Pair Corralation between Ageagle Aerial and Cricut

Given the investment horizon of 90 days Ageagle Aerial is expected to generate 1.66 times less return on investment than Cricut. In addition to that, Ageagle Aerial is 5.79 times more volatile than Cricut Inc. It trades about 0.01 of its total potential returns per unit of risk. Cricut Inc is currently generating about 0.05 per unit of volatility. If you would invest  505.00  in Cricut Inc on September 29, 2024 and sell it today you would earn a total of  76.00  from holding Cricut Inc or generate 15.05% return on investment over 90 days.

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

Ageagle Aerial Systems  vs.  Cricut Inc

Ageagle Aerial Systems

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ageagle Aerial Systems are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ageagle Aerial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cricut Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cricut Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Ageagle Aerial and Cricut

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

The idea behind Ageagle Aerial Systems and Cricut Inc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.