Correlation Between Amper SA and Izertis Sa
Can any of the company-specific risk be diversified away by investing in both Amper SA and Izertis Sa 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 Amper SA and Izertis Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amper SA and Izertis Sa, you can compare the effects of market volatilities on Amper SA and Izertis Sa 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 Amper SA with a short position of Izertis Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amper SA and Izertis Sa.
Diversification Opportunities for Amper SA and Izertis Sa
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amper and Izertis is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amper SA and Izertis Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izertis Sa and Amper 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 Amper SA are associated (or correlated) with Izertis Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izertis Sa has no effect on the direction of Amper SA i.e., Amper SA and Izertis Sa go up and down completely randomly.
Pair Corralation between Amper SA and Izertis Sa
Assuming the 90 days trading horizon Amper SA is expected to generate 5.3 times more return on investment than Izertis Sa. However, Amper SA is 5.3 times more volatile than Izertis Sa. It trades about 0.01 of its potential returns per unit of risk. Izertis Sa is currently generating about -0.16 per unit of risk. If you would invest 11.00 in Amper SA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Amper SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amper SA vs. Izertis Sa
Performance |
| Timeline |
| Amper SA |
| Izertis Sa |
Amper SA and Izertis Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amper SA and Izertis Sa
The main advantage of trading using opposite Amper SA and Izertis Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amper SA position performs unexpectedly, Izertis Sa 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 Izertis Sa will offset losses from the drop in Izertis Sa's long position.| Amper SA vs. Ercros | Amper SA vs. Urbas Grupo Financiero | Amper SA vs. Duro Felguera | Amper SA vs. ENCE Energa y |
| Izertis Sa vs. Arteche Lantegi Elkartea | Izertis Sa vs. NH Hoteles | Izertis Sa vs. Naturhouse Health SA | Izertis Sa vs. Tier1 Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |