Correlation Between Neotion SA and Amatheon Agri
Can any of the company-specific risk be diversified away by investing in both Neotion SA and Amatheon Agri 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 Neotion SA and Amatheon Agri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neotion SA and Amatheon Agri Holding, you can compare the effects of market volatilities on Neotion SA and Amatheon Agri 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 Neotion SA with a short position of Amatheon Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neotion SA and Amatheon Agri.
Diversification Opportunities for Neotion SA and Amatheon Agri
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neotion and Amatheon is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Neotion SA and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding and Neotion SA 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 Neotion SA are associated (or correlated) with Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of Neotion SA i.e., Neotion SA and Amatheon Agri go up and down completely randomly.
Pair Corralation between Neotion SA and Amatheon Agri
If you would invest 50.00 in Neotion SA on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Neotion SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Neotion SA vs. Amatheon Agri Holding
Performance |
| Timeline |
| Neotion SA |
| Amatheon Agri Holding |
Neotion SA and Amatheon Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neotion SA and Amatheon Agri
The main advantage of trading using opposite Neotion SA and Amatheon Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neotion SA position performs unexpectedly, Amatheon Agri 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 Amatheon Agri will offset losses from the drop in Amatheon Agri's long position.| Neotion SA vs. Manitou BF SA | Neotion SA vs. Jacquet Metal Service | Neotion SA vs. Mersen SA | Neotion SA vs. Linedata Services SA |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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