Correlation Between AMG Advanced and OCI NV
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and OCI 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 AMG Advanced and OCI NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and OCI NV, you can compare the effects of market volatilities on AMG Advanced and OCI 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 AMG Advanced with a short position of OCI NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and OCI NV.
Diversification Opportunities for AMG Advanced and OCI NV
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and OCI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and OCI NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI NV and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with OCI NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI NV has no effect on the direction of AMG Advanced i.e., AMG Advanced and OCI NV go up and down completely randomly.
Pair Corralation between AMG Advanced and OCI NV
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the OCI NV. In addition to that, AMG Advanced is 1.31 times more volatile than OCI NV. It trades about -0.09 of its total potential returns per unit of risk. OCI NV is currently generating about 0.01 per unit of volatility. If you would invest 1,108 in OCI NV on September 1, 2024 and sell it today you would lose (1.00) from holding OCI NV or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. OCI NV
Performance |
| Timeline |
| AMG Advanced Metallu |
| OCI NV |
AMG Advanced and OCI NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and OCI NV
The main advantage of trading using opposite AMG Advanced and OCI NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, OCI 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 OCI NV will offset losses from the drop in OCI NV's long position.| AMG Advanced vs. BE Semiconductor Industries | AMG Advanced vs. TKH Group NV | AMG Advanced vs. OCI NV | AMG Advanced vs. Aalberts Industries NV |
| OCI NV vs. AMG Advanced Metallurgical | OCI NV vs. NN Group NV | OCI NV vs. Koninklijke Vopak NV | OCI NV vs. BE Semiconductor Industries |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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