Correlation Between Amedeo Air and Hansa Investment
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and Hansa Investment 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 Hansa Investment 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 Hansa Investment, you can compare the effects of market volatilities on Amedeo Air and Hansa Investment 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 Hansa Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Hansa Investment.
Diversification Opportunities for Amedeo Air and Hansa Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amedeo and Hansa is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Hansa Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Investment 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 Hansa Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Investment has no effect on the direction of Amedeo Air i.e., Amedeo Air and Hansa Investment go up and down completely randomly.
Pair Corralation between Amedeo Air and Hansa Investment
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.52 times more return on investment than Hansa Investment. However, Amedeo Air Four is 1.94 times less risky than Hansa Investment. It trades about 0.51 of its potential returns per unit of risk. Hansa Investment is currently generating about -0.17 per unit of risk. If you would invest 4,950 in Amedeo Air Four on September 2, 2024 and sell it today you would earn a total of 370.00 from holding Amedeo Air Four or generate 7.47% 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. Hansa Investment
Performance |
| Timeline |
| Amedeo Air Four |
| Hansa Investment |
Amedeo Air and Hansa Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Hansa Investment
The main advantage of trading using opposite Amedeo Air and Hansa Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, Hansa Investment 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 Hansa Investment will offset losses from the drop in Hansa Investment's long position.| Amedeo Air vs. Spotify Technology SA | Amedeo Air vs. Air Products Chemicals | Amedeo Air vs. Cizzle Biotechnology Holdings | Amedeo Air vs. Finnair Oyj |
| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Fair Oaks Income | Hansa Investment vs. Legal General Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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