Correlation Between Parts ID and AKA Brands

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

Diversification Opportunities for Parts ID and AKA Brands

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Parts and AKA Brands is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Parts ID 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 Parts ID 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 Parts ID 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 Parts ID i.e., Parts ID and AKA Brands go up and down completely randomly.

Pair Corralation between Parts ID and AKA Brands

Allowing for the 90-day total investment horizon Parts ID is expected to generate 1.21 times more return on investment than AKA Brands. However, Parts ID is 1.21 times more volatile than AKA Brands Holding. It trades about -0.06 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.11 per unit of risk. If you would invest  671.00  in Parts ID on April 5, 2022 and sell it today you would lose (522.00)  from holding Parts ID or give up 77.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy72.96%
ValuesDaily Returns

Parts ID  vs.  AKA Brands Holding

 Performance (%) 
      Timeline 
Parts ID 
Parts Performance
0 of 100
Over the last 90 days Parts ID has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in August 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Parts 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 sluggish performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Last Split Factor
1:1
Last Split Date
2010-03-30

AKA Brands Price Channel

Parts ID and AKA Brands Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Parts ID and AKA Brands

The main advantage of trading using opposite Parts ID and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parts ID 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.
The idea behind Parts ID 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.
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go