Correlation Between American Aires and AT S
Can any of the company-specific risk be diversified away by investing in both American Aires and AT S 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 American Aires and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Aires and AT S Austria, you can compare the effects of market volatilities on American Aires and AT S 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 American Aires with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Aires and AT S.
Diversification Opportunities for American Aires and AT S
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and ASAAF is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding American Aires and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and American Aires 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 American Aires are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of American Aires i.e., American Aires and AT S go up and down completely randomly.
Pair Corralation between American Aires and AT S
Assuming the 90 days horizon American Aires is expected to generate 5.44 times more return on investment than AT S. However, American Aires is 5.44 times more volatile than AT S Austria. It trades about 0.07 of its potential returns per unit of risk. AT S Austria is currently generating about -0.05 per unit of risk. If you would invest 11.00 in American Aires on November 4, 2024 and sell it today you would earn a total of 3.00 from holding American Aires or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
American Aires vs. AT S Austria
Performance |
| Timeline |
| American Aires |
| AT S Austria |
American Aires and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Aires and AT S
The main advantage of trading using opposite American Aires and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Aires position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| American Aires vs. alpha En | American Aires vs. Alps Electric Co | American Aires vs. Bitmine Immersion Technologies | American Aires vs. AT S Austria |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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