Correlation Between AutoStore Holdings and Clean Seas

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

By analyzing existing cross correlation between AutoStore Holdings and Clean Seas Seafood, you can compare the effects of market volatilities on AutoStore Holdings and Clean Seas 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 AutoStore Holdings with a short position of Clean Seas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Clean Seas.

Diversification Opportunities for AutoStore Holdings and Clean Seas

-0.78

Correlation Coefficient

AutoStore Holdings  Clean Seas

Pay attention - limited upside

The 3 months correlation between AutoStore and Clean is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Clean Seas Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Seas Seafood and AutoStore 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 AutoStore Holdings are associated (or correlated) with Clean Seas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Seas Seafood has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Clean Seas go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Clean Seas

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 0.69 times more return on investment than Clean Seas. However, AutoStore Holdings is 1.45 times less risky than Clean Seas. It trades about 0.18 of its potential returns per unit of risk. Clean Seas Seafood is currently generating about -0.26 per unit of risk. If you would invest  951.00  in AutoStore Holdings on September 12, 2024 and sell it today you would earn a total of  333.00  from holding AutoStore Holdings or generate 35.02% return on investment over 90 days.

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

AutoStore Holdings  vs.  Clean Seas Seafood

AutoStore Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AutoStore Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, AutoStore Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Clean Seas Seafood

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clean Seas Seafood has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with AutoStore Holdings and Clean Seas

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

The idea behind AutoStore Holdings and Clean Seas Seafood 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.