Correlation Between LIFE + and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both LIFE + 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 LIFE + and AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFE BANC SPLIT and AMAG Austria Metall, you can compare the effects of market volatilities on LIFE + 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 LIFE + with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFE + and AMAG Austria.
Diversification Opportunities for LIFE + and AMAG Austria
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIFE and AMAG is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding LIFE BANC SPLIT and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall and LIFE + 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 LIFE BANC SPLIT 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 Metall has no effect on the direction of LIFE + i.e., LIFE + and AMAG Austria go up and down completely randomly.
Pair Corralation between LIFE + and AMAG Austria
Assuming the 90 days horizon LIFE BANC SPLIT is expected to generate 1.9 times more return on investment than AMAG Austria. However, LIFE + is 1.9 times more volatile than AMAG Austria Metall. It trades about 0.0 of its potential returns per unit of risk. AMAG Austria Metall is currently generating about 0.0 per unit of risk. If you would invest 542.00 in LIFE BANC SPLIT on November 6, 2024 and sell it today you would lose (12.00) from holding LIFE BANC SPLIT or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFE BANC SPLIT vs. AMAG Austria Metall
Performance |
| Timeline |
| LIFE BANC SPLIT |
| AMAG Austria Metall |
LIFE + and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFE + and AMAG Austria
The main advantage of trading using opposite LIFE + and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFE + 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.| LIFE + vs. Eidesvik Offshore ASA | LIFE + vs. SIEM OFFSHORE NEW | LIFE + vs. CSSC Offshore Marine | LIFE + vs. COREBRIDGE FINANCIAL INC |
| AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Norsk Hydro ASA | AMAG Austria vs. Aluminum of | AMAG Austria vs. Alcoa Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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