Correlation Between Teledyne Technologies and AERWINS Technologies

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

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

Diversification Opportunities for Teledyne Technologies and AERWINS Technologies

-0.35

Correlation Coefficient

Teledyne Technologies  AERWINS Technologies

Very good diversification

The 3 months correlation between Teledyne and AERWINS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Teledyne Technologies Incorpor and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Teledyne 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 Teledyne Technologies Incorporated 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 Teledyne Technologies i.e., Teledyne Technologies and AERWINS Technologies go up and down completely randomly.

Pair Corralation between Teledyne Technologies and AERWINS Technologies

Considering the 90-day investment horizon Teledyne Technologies Incorporated is expected to generate 0.07 times more return on investment than AERWINS Technologies. However, Teledyne Technologies Incorporated is 14.21 times less risky than AERWINS Technologies. It trades about 0.04 of its potential returns per unit of risk. AERWINS Technologies is currently generating about -0.03 per unit of risk. If you would invest  42,597  in Teledyne Technologies Incorporated on September 12, 2024 and sell it today you would earn a total of  4,885  from holding Teledyne Technologies Incorporated or generate 11.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.02%
Values	Daily Returns

Teledyne Technologies Incorpor  vs.  AERWINS Technologies

Teledyne Technologies

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Teledyne Technologies Incorporated are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Teledyne Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 Teledyne Technologies and AERWINS Technologies

The main advantage of trading using opposite Teledyne Technologies and AERWINS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teledyne Technologies 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 Teledyne Technologies Incorporated 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.