Correlation Between Amedeo Air and Global Net
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Amedeo Air and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Global Net.
Diversification Opportunities for Amedeo Air and Global Net
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amedeo and Global is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Amedeo Air i.e., Amedeo Air and Global Net go up and down completely randomly.
Pair Corralation between Amedeo Air and Global Net
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.37 times more return on investment than Global Net. However, Amedeo Air Four is 2.68 times less risky than Global Net. It trades about 0.21 of its potential returns per unit of risk. Global Net Lease is currently generating about 0.0 per unit of risk. If you would invest 3,486 in Amedeo Air Four on September 3, 2024 and sell it today you would earn a total of 1,854 from holding Amedeo Air Four or generate 53.18% 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. Global Net Lease
Performance |
| Timeline |
| Amedeo Air Four |
| Global Net Lease |
Amedeo Air and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Global Net
The main advantage of trading using opposite Amedeo Air and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Amedeo Air vs. Catalyst Media Group | Amedeo Air vs. CATLIN GROUP | Amedeo Air vs. RTW Venture Fund | Amedeo Air vs. Secure Property Development |
| Global Net vs. Catalyst Media Group | Global Net vs. CATLIN GROUP | Global Net vs. RTW Venture Fund | Global Net vs. Secure Property Development |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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