Correlation Between AMAG Austria and DALATA HOTEL
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and DALATA HOTEL 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 DALATA HOTEL 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 DALATA HOTEL, you can compare the effects of market volatilities on AMAG Austria and DALATA HOTEL 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 DALATA HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and DALATA HOTEL.
Diversification Opportunities for AMAG Austria and DALATA HOTEL
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMAG and DALATA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and DALATA HOTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DALATA HOTEL 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 DALATA HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DALATA HOTEL has no effect on the direction of AMAG Austria i.e., AMAG Austria and DALATA HOTEL go up and down completely randomly.
Pair Corralation between AMAG Austria and DALATA HOTEL
Assuming the 90 days horizon AMAG Austria Metall is expected to under-perform the DALATA HOTEL. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 2.63 times less risky than DALATA HOTEL. The stock trades about -0.04 of its potential returns per unit of risk. The DALATA HOTEL is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 406.00 in DALATA HOTEL on November 6, 2024 and sell it today you would earn a total of 33.00 from holding DALATA HOTEL or generate 8.13% 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. DALATA HOTEL
Performance |
| Timeline |
| AMAG Austria Metall |
| DALATA HOTEL |
AMAG Austria and DALATA HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and DALATA HOTEL
The main advantage of trading using opposite AMAG Austria and DALATA HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, DALATA HOTEL 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 DALATA HOTEL will offset losses from the drop in DALATA HOTEL's long position.| AMAG Austria vs. GREENX METALS LTD | AMAG Austria vs. Verizon Communications | AMAG Austria vs. China Communications Services | AMAG Austria vs. Computershare Limited |
| DALATA HOTEL vs. Zijin Mining Group | DALATA HOTEL vs. GALENA MINING LTD | DALATA HOTEL vs. SOEDER SPORTFISKE AB | DALATA HOTEL vs. MAG SILVER |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance |