Correlation Between Signal Advance and Twin Vee

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

Diversification Opportunities for Signal Advance and Twin Vee

-0.41
  Correlation Coefficient

Very good diversification

The 3 months correlation between Signal and Twin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Signal Advance and Twin Vee Powercats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twin Vee Powercats and Signal Advance 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 Signal Advance are associated (or correlated) with Twin Vee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twin Vee Powercats has no effect on the direction of Signal Advance i.e., Signal Advance and Twin Vee go up and down completely randomly.

Pair Corralation between Signal Advance and Twin Vee

Given the investment horizon of 90 days Signal Advance is expected to generate 1.3 times more return on investment than Twin Vee. However, Signal Advance is 1.3 times more volatile than Twin Vee Powercats. It trades about 0.13 of its potential returns per unit of risk. Twin Vee Powercats is currently generating about 0.06 per unit of risk. If you would invest  13.00  in Signal Advance on September 1, 2025 and sell it today you would earn a total of  11.00  from holding Signal Advance or generate 84.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Signal Advance  vs.  Twin Vee Powercats

 Performance 
       Timeline  
Signal Advance 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Signal Advance are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile technical and fundamental indicators, Signal Advance disclosed solid returns over the last few months and may actually be approaching a breakup point.
Twin Vee Powercats 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Twin Vee Powercats are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Twin Vee exhibited solid returns over the last few months and may actually be approaching a breakup point.

Signal Advance and Twin Vee Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Signal Advance and Twin Vee

The main advantage of trading using opposite Signal Advance and Twin Vee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signal Advance position performs unexpectedly, Twin Vee 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 Twin Vee will offset losses from the drop in Twin Vee's long position.
The idea behind Signal Advance and Twin Vee Powercats 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 the CEOs Directory module to screen CEOs from public companies around the world.

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