Correlation Between Aether Holdings, and Intercontinental

Can any of the company-specific risk be diversified away by investing in both Aether Holdings, and Intercontinental 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 Aether Holdings, and Intercontinental into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aether Holdings, and Intercontinental Exchange, you can compare the effects of market volatilities on Aether Holdings, and Intercontinental 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 Aether Holdings, with a short position of Intercontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aether Holdings, and Intercontinental.

Diversification Opportunities for Aether Holdings, and Intercontinental

-0.73

Correlation Coefficient

Aether Holdings,  Intercontinental

Pay attention - limited upside

The 3 months correlation between Aether and Intercontinental is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aether Holdings, and Intercontinental Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercontinental Exchange and Aether Holdings, 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 Aether Holdings, are associated (or correlated) with Intercontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercontinental Exchange has no effect on the direction of Aether Holdings, i.e., Aether Holdings, and Intercontinental go up and down completely randomly.

Pair Corralation between Aether Holdings, and Intercontinental

Given the investment horizon of 90 days Aether Holdings, is expected to generate 3.26 times more return on investment than Intercontinental. However, Aether Holdings, is 3.26 times more volatile than Intercontinental Exchange. It trades about 0.07 of its potential returns per unit of risk. Intercontinental Exchange is currently generating about -0.1 per unit of risk. If you would invest  512.00  in Aether Holdings, on September 10, 2025 and sell it today you would earn a total of  74.00  from holding Aether Holdings, or generate 14.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aether Holdings,  vs.  Intercontinental Exchange

Aether Holdings,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Aether Holdings, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical indicators, Aether Holdings, reported solid returns over the last few months and may actually be approaching a breakup point.

Intercontinental Exchange

Risk-Adjusted Performance

Weakest

Over the last 90 days Intercontinental Exchange has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Aether Holdings, and Intercontinental

The main advantage of trading using opposite Aether Holdings, and Intercontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aether Holdings, position performs unexpectedly, Intercontinental 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 Intercontinental will offset losses from the drop in Intercontinental's long position.

The idea behind Aether Holdings, and Intercontinental Exchange 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.