Correlation Between AERWINS Technologies and Microvision

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

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

Diversification Opportunities for AERWINS Technologies and Microvision

0.05

Correlation Coefficient

AERWINS Technologies  Microvision

Significant diversification

The 3 months correlation between AERWINS and Microvision is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Microvision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvision 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 Microvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvision has no effect on the direction of AERWINS Technologies i.e., AERWINS Technologies and Microvision go up and down completely randomly.

Pair Corralation between AERWINS Technologies and Microvision

If you would invest  96.00  in AERWINS Technologies on September 16, 2024 and sell it today you would earn a total of  0.00  from holding AERWINS Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

AERWINS Technologies  vs.  Microvision

AERWINS Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AERWINS Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, AERWINS Technologies is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Microvision

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Microvision has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward 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 AERWINS Technologies and Microvision

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

The idea behind AERWINS Technologies and Microvision 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.