Correlation Between My Size and Amesite Operating

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

By analyzing existing cross correlation between My Size and Amesite Operating Co, you can compare the effects of market volatilities on My Size and Amesite Operating 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 My Size with a short position of Amesite Operating. Check out your portfolio center. Please also check ongoing floating volatility patterns of My Size and Amesite Operating.

Diversification Opportunities for My Size and Amesite Operating

-0.29

Correlation Coefficient

My Size  Amesite Operating

Very good diversification

The 3 months correlation between MYSZ and Amesite is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding My Size and Amesite Operating Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amesite Operating and My Size 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 My Size are associated (or correlated) with Amesite Operating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amesite Operating has no effect on the direction of My Size i.e., My Size and Amesite Operating go up and down completely randomly.

Pair Corralation between My Size and Amesite Operating

Given the investment horizon of 90 days My Size is expected to under-perform the Amesite Operating. But the stock apears to be less risky and, when comparing its historical volatility, My Size is 1.11 times less risky than Amesite Operating. The stock trades about -0.07 of its potential returns per unit of risk. The Amesite Operating Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Amesite Operating Co on September 14, 2024 and sell it today you would earn a total of  209.00  from holding Amesite Operating Co or generate 114.21% return on investment over 90 days.

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

My Size  vs.  Amesite Operating Co

My Size

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days My Size has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Amesite Operating

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amesite Operating Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amesite Operating unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with My Size and Amesite Operating

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

The idea behind My Size and Amesite Operating Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.