Correlation Between 24SEVENOFFICE GROUP and AMAG AUSTRIA
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and AMAG AUSTRIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and AMAG AUSTRIA M, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of AMAG AUSTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and AMAG AUSTRIA.
Diversification Opportunities for 24SEVENOFFICE GROUP and AMAG AUSTRIA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 24SEVENOFFICE and AMAG is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and AMAG AUSTRIA go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and AMAG AUSTRIA
Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to under-perform the AMAG AUSTRIA. But the stock apears to be less risky and, when comparing its historical volatility, 24SEVENOFFICE GROUP AB is 1.89 times less risky than AMAG AUSTRIA. The stock trades about -0.12 of its potential returns per unit of risk. The AMAG AUSTRIA M is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,460 in AMAG AUSTRIA M on September 12, 2024 and sell it today you would lose (30.00) from holding AMAG AUSTRIA M or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. AMAG AUSTRIA M
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| AMAG AUSTRIA M |
24SEVENOFFICE GROUP and AMAG AUSTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and AMAG AUSTRIA
The main advantage of trading using opposite 24SEVENOFFICE GROUP and AMAG AUSTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. Salesforce | 24SEVENOFFICE GROUP vs. Superior Plus Corp | 24SEVENOFFICE GROUP vs. SIVERS SEMICONDUCTORS AB | 24SEVENOFFICE GROUP vs. Norsk Hydro ASA |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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