Correlation Between Ambu AS and Maha Energy
Can any of the company-specific risk be diversified away by investing in both Ambu AS and Maha Energy 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 Ambu AS and Maha Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and Maha Energy AB, you can compare the effects of market volatilities on Ambu AS and Maha Energy 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 Ambu AS with a short position of Maha Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and Maha Energy.
Diversification Opportunities for Ambu AS and Maha Energy
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambu and Maha is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and Maha Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maha Energy AB and Ambu AS 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 Ambu AS are associated (or correlated) with Maha Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maha Energy AB has no effect on the direction of Ambu AS i.e., Ambu AS and Maha Energy go up and down completely randomly.
Pair Corralation between Ambu AS and Maha Energy
Assuming the 90 days trading horizon Ambu AS is expected to under-perform the Maha Energy. In addition to that, Ambu AS is 2.16 times more volatile than Maha Energy AB. It trades about -0.23 of its total potential returns per unit of risk. Maha Energy AB is currently generating about 0.08 per unit of volatility. If you would invest 632.00 in Maha Energy AB on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Maha Energy AB or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambu AS vs. Maha Energy AB
Performance |
| Timeline |
| Ambu AS |
| Maha Energy AB |
Ambu AS and Maha Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and Maha Energy
The main advantage of trading using opposite Ambu AS and Maha Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, Maha Energy 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 Maha Energy will offset losses from the drop in Maha Energy's long position.The idea behind Ambu AS and Maha Energy AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Maha Energy vs. GomSpace Group AB | Maha Energy vs. SaltX Technology Holding | Maha Energy vs. Ambu AS | Maha Energy vs. Fingerprint Cards AB |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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