Correlation Between AMMB Holdings and FinecoBank Banca
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and FinecoBank Banca 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 AMMB Holdings and FinecoBank Banca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMMB Holdings Berhad and FinecoBank Banca Fineco, you can compare the effects of market volatilities on AMMB Holdings and FinecoBank Banca 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 AMMB Holdings with a short position of FinecoBank Banca. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and FinecoBank Banca.
Diversification Opportunities for AMMB Holdings and FinecoBank Banca
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMMB and FinecoBank is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Berhad and FinecoBank Banca Fineco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinecoBank Banca Fineco and AMMB Holdings 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 AMMB Holdings Berhad are associated (or correlated) with FinecoBank Banca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinecoBank Banca Fineco has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and FinecoBank Banca go up and down completely randomly.
Pair Corralation between AMMB Holdings and FinecoBank Banca
Assuming the 90 days horizon AMMB Holdings is expected to generate 1.26 times less return on investment than FinecoBank Banca. But when comparing it to its historical volatility, AMMB Holdings Berhad is 2.8 times less risky than FinecoBank Banca. It trades about 0.08 of its potential returns per unit of risk. FinecoBank Banca Fineco is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,195 in FinecoBank Banca Fineco on August 26, 2024 and sell it today you would earn a total of 253.00 from holding FinecoBank Banca Fineco or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 57.95% |
| Values | Daily Returns |
AMMB Holdings Berhad vs. FinecoBank Banca Fineco
Performance |
| Timeline |
| AMMB Holdings Berhad |
| FinecoBank Banca Fineco |
AMMB Holdings and FinecoBank Banca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and FinecoBank Banca
The main advantage of trading using opposite AMMB Holdings and FinecoBank Banca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, FinecoBank Banca 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 FinecoBank Banca will offset losses from the drop in FinecoBank Banca's long position.| AMMB Holdings vs. Entravision Communications | AMMB Holdings vs. Dolphin Entertainment | AMMB Holdings vs. 51Talk Online Education | AMMB Holdings vs. Xunlei Ltd Adr |
| FinecoBank Banca vs. Alpha Bank SA | FinecoBank Banca vs. Deutsche Bank AG | FinecoBank Banca vs. Western Alliance Bancorporation | FinecoBank Banca vs. KBC Groep NV |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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