Correlation Between Amadeus IT and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both Amadeus IT and Amadeus IT 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 Amadeus IT and Amadeus IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amadeus IT Holding and Amadeus IT Group, you can compare the effects of market volatilities on Amadeus IT and Amadeus IT 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 Amadeus IT with a short position of Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amadeus IT and Amadeus IT.
Diversification Opportunities for Amadeus IT and Amadeus IT
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amadeus and Amadeus is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Holding and Amadeus IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Group and Amadeus IT 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 Amadeus IT Holding are associated (or correlated) with Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Group has no effect on the direction of Amadeus IT i.e., Amadeus IT and Amadeus IT go up and down completely randomly.
Pair Corralation between Amadeus IT and Amadeus IT
Assuming the 90 days horizon Amadeus IT Holding is expected to under-perform the Amadeus IT. But the pink sheet apears to be less risky and, when comparing its historical volatility, Amadeus IT Holding is 2.52 times less risky than Amadeus IT. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Amadeus IT Group is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 7,390 in Amadeus IT Group on August 27, 2024 and sell it today you would lose (232.00) from holding Amadeus IT Group or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amadeus IT Holding vs. Amadeus IT Group
Performance |
| Timeline |
| Amadeus IT Holding |
| Amadeus IT Group |
Amadeus IT and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amadeus IT and Amadeus IT
The main advantage of trading using opposite Amadeus IT and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amadeus IT position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| Amadeus IT vs. SosTravel SPA | Amadeus IT vs. Arma Services | Amadeus IT vs. Transat AT | Amadeus IT vs. Airbnb Inc |
| Amadeus IT vs. SosTravel SPA | Amadeus IT vs. Arma Services | Amadeus IT vs. Transat AT | Amadeus IT vs. Airbnb Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |