Correlation Between AMAG Austria and Gurktaler Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellschaft, you can compare the effects of market volatilities on AMAG Austria and Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Gurktaler Aktiengesellscha.
Diversification Opportunities for AMAG Austria and Gurktaler Aktiengesellscha
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMAG and Gurktaler is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and Gurktaler Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler Aktiengesellscha has no effect on the direction of AMAG Austria i.e., AMAG Austria and Gurktaler Aktiengesellscha go up and down completely randomly.
Pair Corralation between AMAG Austria and Gurktaler Aktiengesellscha
Assuming the 90 days trading horizon AMAG Austria Metall is expected to generate 1.46 times more return on investment than Gurktaler Aktiengesellscha. However, AMAG Austria is 1.46 times more volatile than Gurktaler Aktiengesellschaft. It trades about -0.08 of its potential returns per unit of risk. Gurktaler Aktiengesellschaft is currently generating about -0.22 per unit of risk. If you would invest 2,460 in AMAG Austria Metall on September 2, 2024 and sell it today you would lose (70.00) from holding AMAG Austria Metall or give up 2.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AMAG Austria Metall vs. Gurktaler Aktiengesellschaft
Performance |
| Timeline |
| AMAG Austria Metall |
| Gurktaler Aktiengesellscha |
AMAG Austria and Gurktaler Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Gurktaler Aktiengesellscha
The main advantage of trading using opposite AMAG Austria and Gurktaler Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, Gurktaler Aktiengesellscha 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 Gurktaler Aktiengesellscha will offset losses from the drop in Gurktaler Aktiengesellscha's long position.| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc AG |
| Gurktaler Aktiengesellscha vs. Wiener Privatbank SE | Gurktaler Aktiengesellscha vs. AMAG Austria Metall | Gurktaler Aktiengesellscha vs. Erste Group Bank | Gurktaler Aktiengesellscha vs. BKS Bank 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |