Correlation Between AMAG Austria and Exor NV
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and Exor NV 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 Exor NV 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 Exor NV, you can compare the effects of market volatilities on AMAG Austria and Exor NV 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 Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Exor NV.
Diversification Opportunities for AMAG Austria and Exor NV
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMAG and Exor is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV 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 Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of AMAG Austria i.e., AMAG Austria and Exor NV go up and down completely randomly.
Pair Corralation between AMAG Austria and Exor NV
Assuming the 90 days trading horizon AMAG Austria is expected to generate 1.69 times less return on investment than Exor NV. But when comparing it to its historical volatility, AMAG Austria Metall is 1.19 times less risky than Exor NV. It trades about 0.09 of its potential returns per unit of risk. Exor NV is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 9,045 in Exor NV on November 28, 2024 and sell it today you would earn a total of 385.00 from holding Exor NV or generate 4.26% 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. Exor NV
Performance |
| Timeline |
| AMAG Austria Metall |
| Exor NV |
AMAG Austria and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Exor NV
The main advantage of trading using opposite AMAG Austria and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, Exor NV 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 Exor NV will offset losses from the drop in Exor NV's long position.| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc AG |
| Exor NV vs. Wiener Privatbank SE | Exor NV vs. SBM Offshore NV | Exor NV vs. Addiko Bank AG | Exor NV vs. Oberbank 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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