Correlation Between Amadeus IT and Amper SA
Can any of the company-specific risk be diversified away by investing in both Amadeus IT and Amper 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 Amadeus IT and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amadeus IT Group and Amper SA, you can compare the effects of market volatilities on Amadeus IT and Amper 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 Amadeus IT with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amadeus IT and Amper SA.
Diversification Opportunities for Amadeus IT and Amper SA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amadeus and Amper is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Group and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Amadeus IT 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 Amadeus IT Group are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Amadeus IT i.e., Amadeus IT and Amper SA go up and down completely randomly.
Pair Corralation between Amadeus IT and Amper SA
Assuming the 90 days trading horizon Amadeus IT is expected to generate 2.32 times less return on investment than Amper SA. But when comparing it to its historical volatility, Amadeus IT Group is 4.71 times less risky than Amper SA. It trades about 0.04 of its potential returns per unit of risk. Amper SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Amper SA on August 30, 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amadeus IT Group vs. Amper SA
Performance |
| Timeline |
| Amadeus IT Group |
| Amper SA |
Amadeus IT and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amadeus IT and Amper SA
The main advantage of trading using opposite Amadeus IT and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amadeus IT position performs unexpectedly, Amper 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 Amper SA will offset losses from the drop in Amper SA's long position.| Amadeus IT vs. Aena SA | Amadeus IT vs. Grifols SA | Amadeus IT vs. Industria de Diseno | Amadeus IT vs. Ferrovial |
| Amper SA vs. Metrovacesa SA | Amper SA vs. Atom Hoteles Socimi | Amper SA vs. Aedas Homes SL | Amper SA vs. Hispanotels Inversiones SOCIMI |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |