Correlation Between AMAG Austria and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and ACS Actividades 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 ACS Actividades 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 ACS Actividades de, you can compare the effects of market volatilities on AMAG Austria and ACS Actividades 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 ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and ACS Actividades.
Diversification Opportunities for AMAG Austria and ACS Actividades
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMAG and ACS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de 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 ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of AMAG Austria i.e., AMAG Austria and ACS Actividades go up and down completely randomly.
Pair Corralation between AMAG Austria and ACS Actividades
Assuming the 90 days trading horizon AMAG Austria Metall is expected to under-perform the ACS Actividades. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 1.07 times less risky than ACS Actividades. The stock trades about -0.05 of its potential returns per unit of risk. The ACS Actividades de is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,441 in ACS Actividades de on August 26, 2024 and sell it today you would earn a total of 823.00 from holding ACS Actividades de or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. ACS Actividades de
Performance |
| Timeline |
| AMAG Austria Metall |
| ACS Actividades de |
AMAG Austria and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and ACS Actividades
The main advantage of trading using opposite AMAG Austria and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc AG |
| ACS Actividades vs. Oberbank AG | ACS Actividades vs. RATH Aktiengesellschaft | ACS Actividades vs. Semperit Aktiengesellschaft Holding | ACS Actividades vs. Telekom Austria AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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