Correlation Between Mind Technology and AERWINS Technologies

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

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

Diversification Opportunities for Mind Technology and AERWINS Technologies

0.45

Correlation Coefficient

Mind Technology  AERWINS Technologies

Very weak diversification

The 3 months correlation between Mind and AERWINS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology Pref and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Mind Technology 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 Mind Technology Pref are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Mind Technology i.e., Mind Technology and AERWINS Technologies go up and down completely randomly.

Pair Corralation between Mind Technology and AERWINS Technologies

Assuming the 90 days horizon Mind Technology Pref is expected to generate 0.47 times more return on investment than AERWINS Technologies. However, Mind Technology Pref is 2.12 times less risky than AERWINS Technologies. It trades about 0.01 of its potential returns per unit of risk. AERWINS Technologies is currently generating about -0.07 per unit of risk. If you would invest  684.00  in Mind Technology Pref on September 4, 2024 and sell it today you would lose (684.00) from holding Mind Technology Pref or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	88.22%
Values	Daily Returns

Mind Technology Pref  vs.  AERWINS Technologies

Mind Technology Pref

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mind Technology Pref has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Preferred Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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 latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mind Technology and AERWINS Technologies

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

The idea behind Mind Technology Pref and AERWINS Technologies 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.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.