Correlation Between Ault Global and Target
Can any of the company-specific risk be diversified away by investing in both Ault Global and Target 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 Ault Global and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ault Global Holdings and Target, you can compare the effects of market volatilities on Ault Global and Target 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 Ault Global with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ault Global and Target.
Diversification Opportunities for Ault Global and Target
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ault and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ault Global Holdings and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Ault Global 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 Ault Global Holdings are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Ault Global i.e., Ault Global and Target go up and down completely randomly.
Pair Corralation between Ault Global and Target
If you would invest 14,148 in Target on January 26, 2024 and sell it today you would earn a total of 2,386 from holding Target or generate 16.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ault Global Holdings vs. Target
Performance |
Timeline |
Ault Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Target |
Ault Global and Target Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ault Global and Target
The main advantage of trading using opposite Ault Global and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ault Global position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.Ault Global vs. Minerals Technologies | Ault Global vs. Transphorm Technology | Ault Global vs. The Cheesecake Factory | Ault Global vs. Texas Roadhouse |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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