Correlation Between ADRIATIC METALS and Ambea AB
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and Ambea AB 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 ADRIATIC METALS and Ambea AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and Ambea AB, you can compare the effects of market volatilities on ADRIATIC METALS and Ambea AB 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 ADRIATIC METALS with a short position of Ambea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and Ambea AB.
Diversification Opportunities for ADRIATIC METALS and Ambea AB
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ADRIATIC and Ambea is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and Ambea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambea AB and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with Ambea AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambea AB has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and Ambea AB go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and Ambea AB
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 1.97 times more return on investment than Ambea AB. However, ADRIATIC METALS is 1.97 times more volatile than Ambea AB. It trades about 0.08 of its potential returns per unit of risk. Ambea AB is currently generating about 0.05 per unit of risk. If you would invest 230.00 in ADRIATIC METALS LS 013355 on September 13, 2024 and sell it today you would earn a total of 10.00 from holding ADRIATIC METALS LS 013355 or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. Ambea AB
Performance |
| Timeline |
| ADRIATIC METALS LS |
| Ambea AB |
ADRIATIC METALS and Ambea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and Ambea AB
The main advantage of trading using opposite ADRIATIC METALS and Ambea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, Ambea AB 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 Ambea AB will offset losses from the drop in Ambea AB's long position.| ADRIATIC METALS vs. Goodyear Tire Rubber | ADRIATIC METALS vs. Materialise NV | ADRIATIC METALS vs. CN MODERN DAIRY | ADRIATIC METALS vs. Performance Food Group |
| Ambea AB vs. CHIBA BANK | Ambea AB vs. Carsales | Ambea AB vs. The Hanover Insurance | Ambea AB vs. Webster Financial |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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