Correlation Between AMA Group and Aisin
Can any of the company-specific risk be diversified away by investing in both AMA Group and Aisin 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 AMA Group and Aisin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMA Group Limited and Aisin, you can compare the effects of market volatilities on AMA Group and Aisin 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 AMA Group with a short position of Aisin. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMA Group and Aisin.
Diversification Opportunities for AMA Group and Aisin
Pay attention - limited upside
The 3 months correlation between AMA and Aisin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMA Group Limited and Aisin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aisin and AMA Group 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 AMA Group Limited are associated (or correlated) with Aisin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aisin has no effect on the direction of AMA Group i.e., AMA Group and Aisin go up and down completely randomly.
Pair Corralation between AMA Group and Aisin
If you would invest 0.02 in AMA Group Limited on September 4, 2024 and sell it today you would earn a total of 4.73 from holding AMA Group Limited or generate 23650.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
AMA Group Limited vs. Aisin
Performance |
| Timeline |
| AMA Group Limited |
| Aisin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMA Group and Aisin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMA Group and Aisin
The main advantage of trading using opposite AMA Group and Aisin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMA Group position performs unexpectedly, Aisin 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 Aisin will offset losses from the drop in Aisin's long position.| AMA Group vs. Adient PLC | AMA Group vs. Lear Corporation | AMA Group vs. Autoliv | AMA Group vs. American Axle Manufacturing |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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