Correlation Between Amalphi Ag and FUJITSU
Can any of the company-specific risk be diversified away by investing in both Amalphi Ag and FUJITSU 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 Amalphi Ag and FUJITSU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between amalphi ag and FUJITSU LTD ADR, you can compare the effects of market volatilities on Amalphi Ag and FUJITSU 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 Amalphi Ag with a short position of FUJITSU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amalphi Ag and FUJITSU.
Diversification Opportunities for Amalphi Ag and FUJITSU
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amalphi and FUJITSU is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding amalphi ag and FUJITSU LTD ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJITSU LTD ADR and Amalphi Ag 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 amalphi ag are associated (or correlated) with FUJITSU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJITSU LTD ADR has no effect on the direction of Amalphi Ag i.e., Amalphi Ag and FUJITSU go up and down completely randomly.
Pair Corralation between Amalphi Ag and FUJITSU
Assuming the 90 days horizon amalphi ag is expected to generate 5.1 times more return on investment than FUJITSU. However, Amalphi Ag is 5.1 times more volatile than FUJITSU LTD ADR. It trades about 0.04 of its potential returns per unit of risk. FUJITSU LTD ADR is currently generating about 0.07 per unit of risk. If you would invest 73.00 in amalphi ag on September 12, 2024 and sell it today you would lose (22.00) from holding amalphi ag or give up 30.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
amalphi ag vs. FUJITSU LTD ADR
Performance |
| Timeline |
| amalphi ag |
| FUJITSU LTD ADR |
Amalphi Ag and FUJITSU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amalphi Ag and FUJITSU
The main advantage of trading using opposite Amalphi Ag and FUJITSU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amalphi Ag position performs unexpectedly, FUJITSU 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 FUJITSU will offset losses from the drop in FUJITSU's long position.| Amalphi Ag vs. Cognizant Technology Solutions | Amalphi Ag vs. Superior Plus Corp | Amalphi Ag vs. SIVERS SEMICONDUCTORS AB | Amalphi Ag vs. Norsk Hydro ASA |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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