Correlation Between Amedeo Air and United Internet
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and United Internet 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 Amedeo Air and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and United Internet AG, you can compare the effects of market volatilities on Amedeo Air and United Internet 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 Amedeo Air with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and United Internet.
Diversification Opportunities for Amedeo Air and United Internet
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amedeo and United is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Amedeo Air 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 Amedeo Air Four are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Amedeo Air i.e., Amedeo Air and United Internet go up and down completely randomly.
Pair Corralation between Amedeo Air and United Internet
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 3.21 times more return on investment than United Internet. However, Amedeo Air is 3.21 times more volatile than United Internet AG. It trades about 0.13 of its potential returns per unit of risk. United Internet AG is currently generating about 0.14 per unit of risk. If you would invest 5,510 in Amedeo Air Four on November 3, 2024 and sell it today you would earn a total of 760.00 from holding Amedeo Air Four or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. United Internet AG
Performance |
| Timeline |
| Amedeo Air Four |
| United Internet AG |
Amedeo Air and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and United Internet
The main advantage of trading using opposite Amedeo Air and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Amedeo Air vs. Jacquet Metal Service | Amedeo Air vs. Atalaya Mining | Amedeo Air vs. Morgan Advanced Materials | Amedeo Air vs. GoldMining |
| United Internet vs. Prosiebensat 1 Media | United Internet vs. XLMedia PLC | United Internet vs. Zinc Media Group | United Internet vs. JB Hunt Transport |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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