Correlation Between Aston Martin and MicroAlgo

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aston Martin and MicroAlgo 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 Aston Martin and MicroAlgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Martin Lagonda and MicroAlgo, you can compare the effects of market volatilities on Aston Martin and MicroAlgo 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 Aston Martin with a short position of MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Martin and MicroAlgo.

Diversification Opportunities for Aston Martin and MicroAlgo

-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between Aston and MicroAlgo is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aston Martin Lagonda and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo and Aston Martin 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 Aston Martin Lagonda are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Aston Martin i.e., Aston Martin and MicroAlgo go up and down completely randomly.

Pair Corralation between Aston Martin and MicroAlgo

Assuming the 90 days horizon Aston Martin Lagonda is expected to under-perform the MicroAlgo. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aston Martin Lagonda is 8.42 times less risky than MicroAlgo. The pink sheet trades about -0.01 of its potential returns per unit of risk. The MicroAlgo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,020  in MicroAlgo on December 30, 2023 and sell it today you would lose (637.00) from holding MicroAlgo or give up 62.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aston Martin Lagonda  vs.  MicroAlgo

 Performance 
       Timeline  
Aston Martin Lagonda 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Aston Martin Lagonda has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
MicroAlgo 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MicroAlgo are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, MicroAlgo displayed solid returns over the last few months and may actually be approaching a breakup point.

Aston Martin and MicroAlgo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aston Martin and MicroAlgo

The main advantage of trading using opposite Aston Martin and MicroAlgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Martin position performs unexpectedly, MicroAlgo 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 MicroAlgo will offset losses from the drop in MicroAlgo's long position.
The idea behind Aston Martin Lagonda and MicroAlgo 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.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Share Portfolio
Track or share privately all of your investments from the convenience of any device
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
AI Investment Finder
Use AI to screen and filter profitable investment opportunities