Correlation Between AMG Advanced and Mutares SE
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Mutares SE 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 Mutares SE 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 mutares SE Co, you can compare the effects of market volatilities on AMG Advanced and Mutares SE 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 Mutares SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Mutares SE.
Diversification Opportunities for AMG Advanced and Mutares SE
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and Mutares is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and mutares SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mutares SE 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 Mutares SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mutares SE has no effect on the direction of AMG Advanced i.e., AMG Advanced and Mutares SE go up and down completely randomly.
Pair Corralation between AMG Advanced and Mutares SE
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 0.31 times more return on investment than Mutares SE. However, AMG Advanced Metallurgical is 3.25 times less risky than Mutares SE. It trades about -0.01 of its potential returns per unit of risk. mutares SE Co is currently generating about -0.01 per unit of risk. If you would invest 1,475 in AMG Advanced Metallurgical on September 2, 2024 and sell it today you would lose (62.00) from holding AMG Advanced Metallurgical or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. mutares SE Co
Performance |
| Timeline |
| AMG Advanced Metallu |
| mutares SE |
AMG Advanced and Mutares SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Mutares SE
The main advantage of trading using opposite AMG Advanced and Mutares SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Mutares SE 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 Mutares SE will offset losses from the drop in Mutares SE'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 |
| Mutares SE vs. Silvercorp Metals | Mutares SE vs. Hochschild Mining plc | Mutares SE vs. Wheaton Precious Metals | Mutares SE vs. Blackrock World Mining |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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