Correlation Between Amulaire Thermal and Buima
Can any of the company-specific risk be diversified away by investing in both Amulaire Thermal and Buima 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 Amulaire Thermal and Buima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amulaire Thermal Technology and Buima Group, you can compare the effects of market volatilities on Amulaire Thermal and Buima 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 Amulaire Thermal with a short position of Buima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amulaire Thermal and Buima.
Diversification Opportunities for Amulaire Thermal and Buima
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amulaire and Buima is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amulaire Thermal Technology and Buima Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buima Group and Amulaire Thermal 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 Amulaire Thermal Technology are associated (or correlated) with Buima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buima Group has no effect on the direction of Amulaire Thermal i.e., Amulaire Thermal and Buima go up and down completely randomly.
Pair Corralation between Amulaire Thermal and Buima
Assuming the 90 days trading horizon Amulaire Thermal Technology is expected to generate 1.04 times more return on investment than Buima. However, Amulaire Thermal is 1.04 times more volatile than Buima Group. It trades about 0.01 of its potential returns per unit of risk. Buima Group is currently generating about -0.05 per unit of risk. If you would invest 3,190 in Amulaire Thermal Technology on October 25, 2024 and sell it today you would lose (215.00) from holding Amulaire Thermal Technology or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amulaire Thermal Technology vs. Buima Group
Performance |
| Timeline |
| Amulaire Thermal Tec |
| Buima Group |
Amulaire Thermal and Buima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amulaire Thermal and Buima
The main advantage of trading using opposite Amulaire Thermal and Buima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amulaire Thermal position performs unexpectedly, Buima 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 Buima will offset losses from the drop in Buima's long position.| Amulaire Thermal vs. Jentech Precision Industrial | Amulaire Thermal vs. Yusin Holding Corp | Amulaire Thermal vs. Laster Tech Corp | Amulaire Thermal vs. Turvo International Co |
| Buima vs. Sunspring Metal Corp | Buima vs. Champion Building Materials | Buima vs. China Glaze Co | Buima vs. CKM Building Material |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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