Correlation Between Remark Holdings and Alfi

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

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

Diversification Opportunities for Remark Holdings and Alfi

0.03

Correlation Coefficient

Remark Holdings  Alfi

Significant diversification

The 3 months correlation between Remark and Alfi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Remark Holdings and Alfi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfi Inc and Remark 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 Remark Holdings are associated (or correlated) with Alfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfi Inc has no effect on the direction of Remark Holdings i.e., Remark Holdings and Alfi go up and down completely randomly.

Pair Corralation between Remark Holdings and Alfi

If you would invest  0.90  in Alfi Inc on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Alfi Inc or generate 0.0% return on investment over 90 days.

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

Remark Holdings  vs.  Alfi Inc

Remark Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Alfi Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alfi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Alfi is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Remark Holdings and Alfi

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

The idea behind Remark Holdings and Alfi 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.