Correlation Between AMG Advanced and Optima Health
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Optima Health 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 Optima Health 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 Optima Health plc, you can compare the effects of market volatilities on AMG Advanced and Optima Health 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 Optima Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Optima Health.
Diversification Opportunities for AMG Advanced and Optima Health
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMG and Optima is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Optima Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optima Health plc 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 Optima Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optima Health plc has no effect on the direction of AMG Advanced i.e., AMG Advanced and Optima Health go up and down completely randomly.
Pair Corralation between AMG Advanced and Optima Health
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Optima Health. In addition to that, AMG Advanced is 1.77 times more volatile than Optima Health plc. It trades about -0.05 of its total potential returns per unit of risk. Optima Health plc is currently generating about 0.12 per unit of volatility. If you would invest 15,100 in Optima Health plc on December 4, 2024 and sell it today you would earn a total of 3,100 from holding Optima Health plc or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 22.33% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Optima Health plc
Performance |
| Timeline |
| AMG Advanced Metallu |
| Optima Health plc |
AMG Advanced and Optima Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Optima Health
The main advantage of trading using opposite AMG Advanced and Optima Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Optima Health 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 Optima Health will offset losses from the drop in Optima Health's long position.| AMG Advanced vs. FC Investment Trust | ||
| AMG Advanced vs. Hansa Investment | ||
| AMG Advanced vs. Tavistock Investments Plc | ||
| AMG Advanced vs. Chrysalis Investments |
| Optima Health vs. Monster Beverage Corp | ||
| Optima Health vs. Bell Food Group | ||
| Optima Health vs. Tyson Foods Cl | ||
| Optima Health vs. XLMedia PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |