Correlation Between AMG Advanced and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and AcadeMedia 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 AMG Advanced and AcadeMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and AcadeMedia AB, you can compare the effects of market volatilities on AMG Advanced and AcadeMedia 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 AMG Advanced with a short position of AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and AcadeMedia.
Diversification Opportunities for AMG Advanced and AcadeMedia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMG and AcadeMedia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of AMG Advanced i.e., AMG Advanced and AcadeMedia go up and down completely randomly.
Pair Corralation between AMG Advanced and AcadeMedia
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the AcadeMedia. In addition to that, AMG Advanced is 1.85 times more volatile than AcadeMedia AB. It trades about -0.21 of its total potential returns per unit of risk. AcadeMedia AB is currently generating about -0.24 per unit of volatility. If you would invest 6,363 in AcadeMedia AB on September 2, 2024 and sell it today you would lose (363.00) from holding AcadeMedia AB or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. AcadeMedia AB
Performance |
| Timeline |
| AMG Advanced Metallu |
| AcadeMedia AB |
AMG Advanced and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and AcadeMedia
The main advantage of trading using opposite AMG Advanced and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia's long position.| AMG Advanced vs. Uniper SE | AMG Advanced vs. Mulberry Group PLC | AMG Advanced vs. London Security Plc | AMG Advanced vs. Triad Group PLC |
| AcadeMedia vs. Molson Coors Beverage | AcadeMedia vs. Charter Communications Cl | AcadeMedia vs. Team Internet Group | AcadeMedia vs. bet at home AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |