Correlation Between Amedeo Air and Weiss Korea
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and Weiss Korea 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 Weiss Korea 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 Weiss Korea Opportunity, you can compare the effects of market volatilities on Amedeo Air and Weiss Korea 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 Weiss Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Weiss Korea.
Diversification Opportunities for Amedeo Air and Weiss Korea
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amedeo and Weiss is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Weiss Korea Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weiss Korea Opportunity 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 Weiss Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weiss Korea Opportunity has no effect on the direction of Amedeo Air i.e., Amedeo Air and Weiss Korea go up and down completely randomly.
Pair Corralation between Amedeo Air and Weiss Korea
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.53 times more return on investment than Weiss Korea. However, Amedeo Air Four is 1.87 times less risky than Weiss Korea. It trades about 0.18 of its potential returns per unit of risk. Weiss Korea Opportunity is currently generating about 0.03 per unit of risk. If you would invest 3,465 in Amedeo Air Four on September 19, 2024 and sell it today you would earn a total of 2,035 from holding Amedeo Air Four or generate 58.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. Weiss Korea Opportunity
Performance |
| Timeline |
| Amedeo Air Four |
| Weiss Korea Opportunity |
Amedeo Air and Weiss Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Weiss Korea
The main advantage of trading using opposite Amedeo Air and Weiss Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, Weiss Korea 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 Weiss Korea will offset losses from the drop in Weiss Korea's long position.| Amedeo Air vs. SupplyMe Capital PLC | Amedeo Air vs. Lloyds Banking Group | Amedeo Air vs. SANTANDER UK 8 | Amedeo Air vs. 88 Energy |
| Weiss Korea vs. Compagnie Plastic Omnium | Weiss Korea vs. Amedeo Air Four | Weiss Korea vs. CleanTech Lithium plc | Weiss Korea vs. Applied Materials |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |