Correlation Between Global-E Online and AKA Brands

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

Diversification Opportunities for Global-E Online and AKA Brands

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Global-E and AKA Brands is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global-E Online and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands Holding and Global-E Online 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 Global-E Online are associated (or correlated) with AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of Global-E Online i.e., Global-E Online and AKA Brands go up and down completely randomly.

Pair Corralation between Global-E Online and AKA Brands

Given the investment horizon of 90 days Global-E Online is expected to generate 0.53 times more return on investment than AKA Brands. However, Global-E Online is 1.88 times less risky than AKA Brands. It trades about 0.03 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.2 per unit of risk. If you would invest  2,919  in Global-E Online on July 7, 2022 and sell it today you would earn a total of  26.00  from holding Global-E Online or generate 0.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Global-E Online  vs.  AKA Brands Holding

 Performance (%) 
       Timeline  
Global-E Online 
Global-E Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Global-E Online are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental drivers, Global-E Online exhibited solid returns over the last few months and may actually be approaching a breakup point.

Global-E Price Channel

AKA Brands Holding 
AKA Brands Performance
0 of 100
Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

AKA Brands Price Channel

Global-E Online and AKA Brands Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Global-E Online and AKA Brands

The main advantage of trading using opposite Global-E Online and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global-E Online position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.
Global-E Online vs. Amazon Inc
The idea behind Global-E Online and AKA Brands Holding 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.
AKA Brands vs. Amazon Inc
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go