Correlation Between AMAG Austria and TERADATA
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and TERADATA 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 AMAG Austria and TERADATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and TERADATA, you can compare the effects of market volatilities on AMAG Austria and TERADATA 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 AMAG Austria with a short position of TERADATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and TERADATA.
Diversification Opportunities for AMAG Austria and TERADATA
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMAG and TERADATA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and AMAG Austria 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 AMAG Austria Metall are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of AMAG Austria i.e., AMAG Austria and TERADATA go up and down completely randomly.
Pair Corralation between AMAG Austria and TERADATA
Assuming the 90 days horizon AMAG Austria Metall is expected to under-perform the TERADATA. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 1.33 times less risky than TERADATA. The stock trades about -0.03 of its potential returns per unit of risk. The TERADATA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,055 in TERADATA on October 16, 2024 and sell it today you would lose (75.00) from holding TERADATA or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. TERADATA
Performance |
| Timeline |
| AMAG Austria Metall |
| TERADATA |
AMAG Austria and TERADATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and TERADATA
The main advantage of trading using opposite AMAG Austria and TERADATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, TERADATA 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 TERADATA will offset losses from the drop in TERADATA's long position.| AMAG Austria vs. TERADATA | AMAG Austria vs. DATAGROUP SE | AMAG Austria vs. SILVER BULLET DATA | AMAG Austria vs. Rocket Internet SE |
| TERADATA vs. TOREX SEMICONDUCTOR LTD | TERADATA vs. Semiconductor Manufacturing International | TERADATA vs. Magnachip Semiconductor | TERADATA vs. ANTA SPORTS PRODUCT |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |