Correlation Between Amica SA and Skyline Investment
Can any of the company-specific risk be diversified away by investing in both Amica SA and Skyline Investment 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 Amica SA and Skyline Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amica SA and Skyline Investment SA, you can compare the effects of market volatilities on Amica SA and Skyline Investment 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 Amica SA with a short position of Skyline Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amica SA and Skyline Investment.
Diversification Opportunities for Amica SA and Skyline Investment
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amica and Skyline is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amica SA and Skyline Investment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyline Investment and Amica SA 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 Amica SA are associated (or correlated) with Skyline Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyline Investment has no effect on the direction of Amica SA i.e., Amica SA and Skyline Investment go up and down completely randomly.
Pair Corralation between Amica SA and Skyline Investment
Assuming the 90 days trading horizon Amica SA is expected to under-perform the Skyline Investment. But the stock apears to be less risky and, when comparing its historical volatility, Amica SA is 2.48 times less risky than Skyline Investment. The stock trades about -0.03 of its potential returns per unit of risk. The Skyline Investment SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Skyline Investment SA on September 4, 2024 and sell it today you would earn a total of 82.00 from holding Skyline Investment SA or generate 124.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amica SA vs. Skyline Investment SA
Performance |
| Timeline |
| Amica SA |
| Skyline Investment |
Amica SA and Skyline Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amica SA and Skyline Investment
The main advantage of trading using opposite Amica SA and Skyline Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amica SA position performs unexpectedly, Skyline Investment 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 Skyline Investment will offset losses from the drop in Skyline Investment's long position.| Amica SA vs. Biztech Konsulting SA | Amica SA vs. Gamedust SA | Amica SA vs. PZ Cormay SA | Amica SA vs. Skyline Investment SA |
| Skyline Investment vs. X Trade Brokers | Skyline Investment vs. Novavis Group SA | Skyline Investment vs. Asseco Business Solutions | Skyline Investment vs. Kogeneracja SA |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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