Correlation Between Amedeo Air and St Galler
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and St Galler 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 St Galler 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 St Galler Kantonalbank, you can compare the effects of market volatilities on Amedeo Air and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and St Galler.
Diversification Opportunities for Amedeo Air and St Galler
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amedeo and 0QQZ is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Amedeo Air i.e., Amedeo Air and St Galler go up and down completely randomly.
Pair Corralation between Amedeo Air and St Galler
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 1.26 times more return on investment than St Galler. However, Amedeo Air is 1.26 times more volatile than St Galler Kantonalbank. It trades about 0.1 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.04 per unit of risk. If you would invest 3,676 in Amedeo Air Four on August 27, 2024 and sell it today you would earn a total of 1,534 from holding Amedeo Air Four or generate 41.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. St Galler Kantonalbank
Performance |
| Timeline |
| Amedeo Air Four |
| St Galler Kantonalbank |
Amedeo Air and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and St Galler
The main advantage of trading using opposite Amedeo Air and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Amedeo Air vs. St Galler Kantonalbank | Amedeo Air vs. Royal Bank of | Amedeo Air vs. Zegona Communications Plc | Amedeo Air vs. X FAB Silicon Foundries |
| St Galler vs. Samsung Electronics Co | St Galler vs. Samsung Electronics Co | St Galler vs. Hyundai Motor | St Galler vs. Toyota Motor 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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