Correlation Between Amper SA and Repsol
Can any of the company-specific risk be diversified away by investing in both Amper SA and Repsol 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 Repsol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amper SA and Repsol, you can compare the effects of market volatilities on Amper SA and Repsol 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 Repsol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amper SA and Repsol.
Diversification Opportunities for Amper SA and Repsol
Very weak diversification
The 3 months correlation between Amper and Repsol is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amper SA and Repsol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repsol 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 Repsol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repsol has no effect on the direction of Amper SA i.e., Amper SA and Repsol go up and down completely randomly.
Pair Corralation between Amper SA and Repsol
Assuming the 90 days trading horizon Amper SA is expected to generate 1.44 times more return on investment than Repsol. However, Amper SA is 1.44 times more volatile than Repsol. It trades about -0.17 of its potential returns per unit of risk. Repsol is currently generating about -0.39 per unit of risk. If you would invest 15.00 in Amper SA on January 14, 2025 and sell it today you would lose (2.00) from holding Amper SA or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amper SA vs. Repsol
Performance |
| Timeline |
| Amper SA |
| Repsol |
Amper SA and Repsol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amper SA and Repsol
The main advantage of trading using opposite Amper SA and Repsol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amper SA position performs unexpectedly, Repsol 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 Repsol will offset losses from the drop in Repsol's long position.| Amper SA vs. Aena SA | Amper SA vs. Grifols SA | Amper SA vs. Industria de Diseno | Amper SA vs. Ferrovial 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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