Correlation Between United Internet and Amedeo Air
Can any of the company-specific risk be diversified away by investing in both United Internet and Amedeo Air 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 United Internet and Amedeo Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and Amedeo Air Four, you can compare the effects of market volatilities on United Internet and Amedeo Air 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 United Internet with a short position of Amedeo Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and Amedeo Air.
Diversification Opportunities for United Internet and Amedeo Air
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Amedeo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and Amedeo Air Four in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedeo Air Four and United Internet 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 United Internet AG are associated (or correlated) with Amedeo Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedeo Air Four has no effect on the direction of United Internet i.e., United Internet and Amedeo Air go up and down completely randomly.
Pair Corralation between United Internet and Amedeo Air
Assuming the 90 days trading horizon United Internet is expected to generate 3.07 times less return on investment than Amedeo Air. In addition to that, United Internet is 1.25 times more volatile than Amedeo Air Four. It trades about 0.1 of its total potential returns per unit of risk. Amedeo Air Four is currently generating about 0.38 per unit of volatility. If you would invest 5,374 in Amedeo Air Four on October 24, 2024 and sell it today you would earn a total of 416.00 from holding Amedeo Air Four or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Internet AG vs. Amedeo Air Four
Performance |
| Timeline |
| United Internet AG |
| Amedeo Air Four |
United Internet and Amedeo Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Internet and Amedeo Air
The main advantage of trading using opposite United Internet and Amedeo Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, Amedeo Air 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 Amedeo Air will offset losses from the drop in Amedeo Air's long position.| United Internet vs. Allianz Technology Trust | United Internet vs. Cognizant Technology Solutions | United Internet vs. Accesso Technology Group | United Internet vs. Take Two Interactive Software |
| Amedeo Air vs. EJF Investments | Amedeo Air vs. Impax Environmental Markets | Amedeo Air vs. Caledonia Investments | Amedeo Air vs. Jupiter Green 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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