Correlation Between Advance Auto and ALARMGUARD HOLDINGS

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Can any of the company-specific risk be diversified away by investing in both Advance Auto and ALARMGUARD HOLDINGS 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 Advance Auto and ALARMGUARD HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advance Auto Parts and ALARMGUARD HOLDINGS INC, you can compare the effects of market volatilities on Advance Auto and ALARMGUARD HOLDINGS 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 Advance Auto with a short position of ALARMGUARD HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advance Auto and ALARMGUARD HOLDINGS.

Diversification Opportunities for Advance Auto and ALARMGUARD HOLDINGS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Advance and ALARMGUARD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advance Auto Parts and ALARMGUARD HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALARMGUARD HOLDINGS INC and Advance Auto 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 Advance Auto Parts are associated (or correlated) with ALARMGUARD HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALARMGUARD HOLDINGS INC has no effect on the direction of Advance Auto i.e., Advance Auto and ALARMGUARD HOLDINGS go up and down completely randomly.

Pair Corralation between Advance Auto and ALARMGUARD HOLDINGS

If you would invest (100.00)  in ALARMGUARD HOLDINGS INC on April 1, 2022 and sell it today you would earn a total of  100.00  from holding ALARMGUARD HOLDINGS INC or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Advance Auto Parts  vs.  ALARMGUARD HOLDINGS INC

 Performance (%) 
      Timeline 
Advance Auto Parts 
Advance Performance
0 of 100
Over the last 90 days Advance Auto Parts 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 very healthy which may send shares a bit higher in July 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0327
Payout Ratio
0.41
Last Split Factor
3:2
Forward Annual Dividend Rate
6.0
Dividend Date
2022-07-01
Ex Dividend Date
2022-06-16
Last Split Date
2005-09-26

Advance Price Channel

ALARMGUARD HOLDINGS INC 
ALARMGUARD Performance
0 of 100
Over the last 90 days ALARMGUARD HOLDINGS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, ALARMGUARD HOLDINGS is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Advance Auto and ALARMGUARD HOLDINGS Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Advance Auto and ALARMGUARD HOLDINGS

The main advantage of trading using opposite Advance Auto and ALARMGUARD HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advance Auto position performs unexpectedly, ALARMGUARD HOLDINGS 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 ALARMGUARD HOLDINGS will offset losses from the drop in ALARMGUARD HOLDINGS's long position.
The idea behind Advance Auto Parts and ALARMGUARD HOLDINGS 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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