Correlation Between Amphastar and Klépierre
Can any of the company-specific risk be diversified away by investing in both Amphastar and Klépierre 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 Amphastar and Klépierre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Klpierre SA, you can compare the effects of market volatilities on Amphastar and Klépierre 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 Amphastar with a short position of Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Klépierre.
Diversification Opportunities for Amphastar and Klépierre
Very poor diversification
The 3 months correlation between Amphastar and Klépierre is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA and Amphastar 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 Amphastar P are associated (or correlated) with Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Amphastar i.e., Amphastar and Klépierre go up and down completely randomly.
Pair Corralation between Amphastar and Klépierre
Given the investment horizon of 90 days Amphastar P is expected to under-perform the Klépierre. In addition to that, Amphastar is 2.54 times more volatile than Klpierre SA. It trades about -0.07 of its total potential returns per unit of risk. Klpierre SA is currently generating about 0.12 per unit of volatility. If you would invest 2,900 in Klpierre SA on November 4, 2024 and sell it today you would earn a total of 62.00 from holding Klpierre SA or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Klpierre SA
Performance |
| Timeline |
| Amphastar P |
| Klpierre SA |
Amphastar and Klépierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Klépierre
The main advantage of trading using opposite Amphastar and Klépierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Klépierre 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 Klépierre will offset losses from the drop in Klépierre's long position.| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
| Klépierre vs. Smart REIT | Klépierre vs. Riocan REIT | Klépierre vs. Plaza Retail REIT | Klépierre vs. Choice Properties Real |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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