Correlation Between AERWINS Technologies and Haber

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

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

Diversification Opportunities for AERWINS Technologies and Haber

0.0

Correlation Coefficient

AERWINS Technologies  Haber

Pay attention - limited upside

The 3 months correlation between AERWINS and Haber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Haber Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haber Inc and AERWINS Technologies 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 AERWINS Technologies are associated (or correlated) with Haber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haber Inc has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Haber go up and down completely randomly.

Pair Corralation between AERWINS Technologies and Haber

If you would invest  1.42  in AERWINS Technologies on February 3, 2024 and sell it today you would earn a total of  0.80  from holding AERWINS Technologies or generate 56.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

AERWINS Technologies  vs.  Haber Inc

AERWINS Technologies

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AERWINS Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, AERWINS Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Haber Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haber Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Haber is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AERWINS Technologies and Haber

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

The idea behind AERWINS Technologies and Haber 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.