Correlation Between AAC Clyde and Sivers IMA

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

By analyzing existing cross correlation between AAC Clyde Space and Sivers IMA Holding, you can compare the effects of market volatilities on AAC Clyde and Sivers IMA 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 AAC Clyde with a short position of Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Clyde and Sivers IMA.

Diversification Opportunities for AAC Clyde and Sivers IMA

-0.9

Correlation Coefficient

AAC Clyde  Sivers IMA

Pay attention - limited upside

The 3 months correlation between AAC and Sivers is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding AAC Clyde Space and Sivers IMA Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sivers IMA Holding and AAC Clyde 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 AAC Clyde Space are associated (or correlated) with Sivers IMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sivers IMA Holding has no effect on the direction of AAC Clyde i.e., AAC Clyde and Sivers IMA go up and down completely randomly.

Pair Corralation between AAC Clyde and Sivers IMA

Assuming the 90 days trading horizon AAC Clyde Space is expected to generate 0.48 times more return on investment than Sivers IMA. However, AAC Clyde Space is 2.09 times less risky than Sivers IMA. It trades about 0.16 of its potential returns per unit of risk. Sivers IMA Holding is currently generating about -0.05 per unit of risk. If you would invest  3,440  in AAC Clyde Space on September 14, 2024 and sell it today you would earn a total of  1,450  from holding AAC Clyde Space or generate 42.15% return on investment over 90 days.

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

AAC Clyde Space  vs.  Sivers IMA Holding

AAC Clyde Space

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AAC Clyde Space are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, AAC Clyde unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sivers IMA Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sivers IMA Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AAC Clyde and Sivers IMA

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

The idea behind AAC Clyde Space and Sivers IMA Holding 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.