Correlation Between AMAG Austria and Aluminumof China
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on AMAG Austria and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Aluminumof China.
Diversification Opportunities for AMAG Austria and Aluminumof China
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMAG and Aluminumof is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of AMAG Austria i.e., AMAG Austria and Aluminumof China go up and down completely randomly.
Pair Corralation between AMAG Austria and Aluminumof China
Assuming the 90 days horizon AMAG Austria Metall is expected to generate 1.1 times more return on investment than Aluminumof China. However, AMAG Austria is 1.1 times more volatile than Aluminum of. It trades about 0.12 of its potential returns per unit of risk. Aluminum of is currently generating about -0.19 per unit of risk. If you would invest 2,270 in AMAG Austria Metall on September 24, 2024 and sell it today you would earn a total of 120.00 from holding AMAG Austria Metall or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. Aluminum of
Performance |
| Timeline |
| AMAG Austria Metall |
| Aluminumof China |
AMAG Austria and Aluminumof China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Aluminumof China
The main advantage of trading using opposite AMAG Austria and Aluminumof China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, Aluminumof China 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 Aluminumof China will offset losses from the drop in Aluminumof China's long position.| AMAG Austria vs. MGIC INVESTMENT | AMAG Austria vs. Gladstone Investment | AMAG Austria vs. RYU Apparel | AMAG Austria vs. Tower One Wireless |
| Aluminumof China vs. Norsk Hydro ASA | Aluminumof China vs. Norsk Hydro ASA | Aluminumof China vs. Alcoa Corp | Aluminumof China vs. AMAG Austria Metall |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |