Correlation Between Iiot Oxys and Red Cat

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

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

Diversification Opportunities for Iiot Oxys and Red Cat

-0.55

Correlation Coefficient

Iiot Oxys  Red Cat

Excellent diversification

The 3 months correlation between Iiot and Red is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Iiot Oxys and Red Cat Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Cat Holdings and Iiot Oxys 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 Iiot Oxys are associated (or correlated) with Red Cat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Cat Holdings has no effect on the direction of Iiot Oxys i.e., Iiot Oxys and Red Cat go up and down completely randomly.

Pair Corralation between Iiot Oxys and Red Cat

Given the investment horizon of 90 days Iiot Oxys is expected to under-perform the Red Cat. In addition to that, Iiot Oxys is 1.24 times more volatile than Red Cat Holdings. It trades about -0.03 of its total potential returns per unit of risk. Red Cat Holdings is currently generating about 0.1 per unit of volatility. If you would invest  688.00  in Red Cat Holdings on May 17, 2025 and sell it today you would earn a total of  249.00  from holding Red Cat Holdings or generate 36.19% return on investment over 90 days.

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

Iiot Oxys  vs.  Red Cat Holdings

Iiot Oxys

Risk-Adjusted Performance

Weakest

Over the last 90 days Iiot Oxys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Red Cat Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Red Cat Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Red Cat unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Iiot Oxys and Red Cat

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

The idea behind Iiot Oxys and Red Cat Holdings 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.