Correlation Between ASICS and Alfi

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ASICS 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 ASICS and Alfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASICS and Alfi Inc, you can compare the effects of market volatilities on ASICS 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 ASICS with a short position of Alfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASICS and Alfi.

Diversification Opportunities for ASICS and Alfi

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between ASICS and Alfi is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ASICS and Alfi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfi Inc and ASICS 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 ASICS 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 ASICS i.e., ASICS and Alfi go up and down completely randomly.

Pair Corralation between ASICS and Alfi

Assuming the 90 days horizon ASICS is expected to generate 0.18 times more return on investment than Alfi. However, ASICS is 5.59 times less risky than Alfi. It trades about 0.16 of its potential returns per unit of risk. Alfi Inc is currently generating about -0.16 per unit of risk. If you would invest  1,707  in ASICS on September 10, 2022 and sell it today you would earn a total of  508.00  from holding ASICS or generate 29.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ASICS  vs.  Alfi Inc

 Performance (%) 
       Timeline  
ASICS 
ASICS Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in ASICS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, ASICS exhibited solid returns over the last few months and may actually be approaching a breakup point.

ASICS Price Channel

Alfi Inc 
Alfi Performance
0 of 100
Over the last 90 days Alfi Inc 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 essential indicators remain rather sound which may send shares a bit higher in January 2023. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Alfi Price Channel

ASICS and Alfi Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASICS and Alfi

The main advantage of trading using opposite ASICS and Alfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASICS 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.
ASICS vs. Nike Inc
ASICS vs. The Boeing
ASICS vs. FT Cboe Vest
ASICS vs. American Manganese
The idea behind ASICS 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.
Alfi vs. Microsoft
Alfi vs. VMware Inc
Alfi vs. Block Inc
Alfi vs. Cisco Systems
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go