Correlation Between Harley Davidson and AMERICAN QUANTUM

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

Diversification Opportunities for Harley Davidson and AMERICAN QUANTUM

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Harley Davidson and AMERICAN QUANTUM

If you would invest  0.00  in AMERICAN QUANTUM CYCLES on April 5, 2022 and sell it today you would earn a total of  0.00  from holding AMERICAN QUANTUM CYCLES or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy2.44%
ValuesDaily Returns

Harley-Davidson  vs.  AMERICAN QUANTUM CYCLES

 Performance (%) 
      Timeline 
Harley-Davidson 
Harley Performance
0 of 100
Over the last 90 days Harley-Davidson has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0197
Payout Ratio
0.15
Last Split Factor
2:1
Forward Annual Dividend Rate
0.63
Dividend Date
2022-06-17
Ex Dividend Date
2022-06-01
Last Split Date
2000-04-10

Harley Price Channel

AMERICAN QUANTUM CYCLES 
AMERICAN Performance
0 of 100
Over the last 90 days AMERICAN QUANTUM CYCLES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, AMERICAN QUANTUM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Harley Davidson and AMERICAN QUANTUM Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Harley Davidson and AMERICAN QUANTUM

The main advantage of trading using opposite Harley Davidson and AMERICAN QUANTUM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harley Davidson position performs unexpectedly, AMERICAN QUANTUM 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 AMERICAN QUANTUM will offset losses from the drop in AMERICAN QUANTUM's long position.
The idea behind Harley-Davidson and AMERICAN QUANTUM CYCLES 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.

AMERICAN QUANTUM CYCLES

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against AMERICAN QUANTUM as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. AMERICAN QUANTUM's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, AMERICAN QUANTUM's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to AMERICAN QUANTUM CYCLES.
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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