Correlation Between Ageagle Aerial and Next Technology
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial and Next Technology 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 Ageagle Aerial and Next Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ageagle Aerial Systems and Next Technology Holding, you can compare the effects of market volatilities on Ageagle Aerial and Next Technology 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 Ageagle Aerial with a short position of Next Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and Next Technology.
Diversification Opportunities for Ageagle Aerial and Next Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ageagle and Next is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and Next Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Technology Holding and Ageagle Aerial 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 Ageagle Aerial Systems are associated (or correlated) with Next Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Technology Holding has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and Next Technology go up and down completely randomly.
Pair Corralation between Ageagle Aerial and Next Technology
Given the investment horizon of 90 days Ageagle Aerial Systems is expected to generate 0.32 times more return on investment than Next Technology. However, Ageagle Aerial Systems is 3.16 times less risky than Next Technology. It trades about -0.07 of its potential returns per unit of risk. Next Technology Holding is currently generating about -0.1 per unit of risk. If you would invest 186.00 in Ageagle Aerial Systems on August 18, 2025 and sell it today you would lose (62.00) from holding Ageagle Aerial Systems or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. Next Technology Holding
Performance |
| Timeline |
| Ageagle Aerial Systems |
| Next Technology Holding |
Ageagle Aerial and Next Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and Next Technology
The main advantage of trading using opposite Ageagle Aerial and Next Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial position performs unexpectedly, Next Technology 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 Next Technology will offset losses from the drop in Next Technology's long position.| Ageagle Aerial vs. Quantum | Ageagle Aerial vs. MicroCloud Hologram | Ageagle Aerial vs. Planet Image International | Ageagle Aerial vs. AstroNova |
| Next Technology vs. Nukkleus | Next Technology vs. Aware Inc | Next Technology vs. mF International Limited | Next Technology vs. Marketwise |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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