Correlation Between Arax Holdings and Sharing Economy
Can any of the company-specific risk be diversified away by investing in both Arax Holdings and Sharing Economy 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 Arax Holdings and Sharing Economy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arax Holdings Corp and Sharing Economy International, you can compare the effects of market volatilities on Arax Holdings and Sharing Economy 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 Arax Holdings with a short position of Sharing Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arax Holdings and Sharing Economy.
Diversification Opportunities for Arax Holdings and Sharing Economy
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Arax and Sharing is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Arax Holdings Corp and Sharing Economy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharing Economy Inte and Arax Holdings 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 Arax Holdings Corp are associated (or correlated) with Sharing Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharing Economy Inte has no effect on the direction of Arax Holdings i.e., Arax Holdings and Sharing Economy go up and down completely randomly.
Pair Corralation between Arax Holdings and Sharing Economy
If you would invest 0.25 in Sharing Economy International on September 18, 2024 and sell it today you would earn a total of 0.00 from holding Sharing Economy International or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
Arax Holdings Corp vs. Sharing Economy International
Performance |
Timeline |
Arax Holdings Corp |
Sharing Economy Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Arax Holdings and Sharing Economy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arax Holdings and Sharing Economy
The main advantage of trading using opposite Arax Holdings and Sharing Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arax Holdings position performs unexpectedly, Sharing Economy 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 Sharing Economy will offset losses from the drop in Sharing Economy's long position.Arax Holdings vs. AppTech Payments Corp | Arax Holdings vs. Arbe Robotics Ltd | Arax Holdings vs. Argentum 47 | Arax Holdings vs. Internet Infinity |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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