Correlation Between Usio and Acm Research

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

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

Diversification Opportunities for Usio and Acm Research

0.01

Correlation Coefficient

Usio  Acm Research

Significant diversification

The 3 months correlation between Usio and Acm is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Usio Inc and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Usio 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 Usio Inc are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Usio i.e., Usio and Acm Research go up and down completely randomly.

Pair Corralation between Usio and Acm Research

Given the investment horizon of 90 days Usio is expected to generate 30.82 times less return on investment than Acm Research. But when comparing it to its historical volatility, Usio Inc is 1.42 times less risky than Acm Research. It trades about 0.0 of its potential returns per unit of risk. Acm Research is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  771.00  in Acm Research on September 20, 2024 and sell it today you would earn a total of  750.00  from holding Acm Research or generate 97.28% return on investment over 90 days.

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

Usio Inc  vs.  Acm Research

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Usio and Acm Research

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

The idea behind Usio Inc and Acm Research 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.