Correlation Between Electronic Control and AFA Protective
Can any of the company-specific risk be diversified away by investing in both Electronic Control and AFA Protective 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 Electronic Control and AFA Protective into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Control Security and AFA Protective Systems, you can compare the effects of market volatilities on Electronic Control and AFA Protective 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 Electronic Control with a short position of AFA Protective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Control and AFA Protective.
Diversification Opportunities for Electronic Control and AFA Protective
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and AFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Control Security and AFA Protective Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFA Protective Systems and Electronic Control 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 Electronic Control Security are associated (or correlated) with AFA Protective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFA Protective Systems has no effect on the direction of Electronic Control i.e., Electronic Control and AFA Protective go up and down completely randomly.
Pair Corralation between Electronic Control and AFA Protective
If you would invest 10.00 in Electronic Control Security on January 26, 2024 and sell it today you would lose (9.65) from holding Electronic Control Security or give up 96.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Electronic Control Security vs. AFA Protective Systems
Performance |
| Timeline |
| Electronic Control |
| AFA Protective Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electronic Control and AFA Protective Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Control and AFA Protective
The main advantage of trading using opposite Electronic Control and AFA Protective positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Control position performs unexpectedly, AFA Protective 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 AFA Protective will offset losses from the drop in AFA Protective's long position.| Electronic Control vs. Mojo Data Solutions | Electronic Control vs. TrackX Holdings | Electronic Control vs. Maptelligent | Electronic Control vs. Obocon Inc |
| AFA Protective vs. Semtech | AFA Protective vs. BK Technologies | AFA Protective vs. Analog Devices | AFA Protective vs. Verra Mobility Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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