Correlation Between Grupo Carso and AMAG AUSTRIA
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and AMAG AUSTRIA 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 Grupo Carso and AMAG AUSTRIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and AMAG AUSTRIA M, you can compare the effects of market volatilities on Grupo Carso and AMAG AUSTRIA 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 Grupo Carso with a short position of AMAG AUSTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and AMAG AUSTRIA.
Diversification Opportunities for Grupo Carso and AMAG AUSTRIA
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and AMAG is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and AMAG AUSTRIA M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG AUSTRIA M and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with AMAG AUSTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG AUSTRIA M has no effect on the direction of Grupo Carso i.e., Grupo Carso and AMAG AUSTRIA go up and down completely randomly.
Pair Corralation between Grupo Carso and AMAG AUSTRIA
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 2.79 times more return on investment than AMAG AUSTRIA. However, Grupo Carso is 2.79 times more volatile than AMAG AUSTRIA M. It trades about 0.06 of its potential returns per unit of risk. AMAG AUSTRIA M is currently generating about 0.03 per unit of risk. If you would invest 510.00 in Grupo Carso SAB on September 12, 2024 and sell it today you would earn a total of 45.00 from holding Grupo Carso SAB or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Grupo Carso SAB vs. AMAG AUSTRIA M
Performance |
| Timeline |
| Grupo Carso SAB |
| AMAG AUSTRIA M |
Grupo Carso and AMAG AUSTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and AMAG AUSTRIA
The main advantage of trading using opposite Grupo Carso and AMAG AUSTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, AMAG AUSTRIA 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 AMAG AUSTRIA will offset losses from the drop in AMAG AUSTRIA's long position.| Grupo Carso vs. Sumitomo | Grupo Carso vs. Superior Plus Corp | Grupo Carso vs. SIVERS SEMICONDUCTORS AB | Grupo Carso vs. NorAm Drilling AS |
| AMAG AUSTRIA vs. SINGAPORE AIRLINES | AMAG AUSTRIA vs. UNIVMUSIC GRPADR050 | AMAG AUSTRIA vs. American Airlines Group | AMAG AUSTRIA vs. ECHO INVESTMENT ZY |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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