Correlation Between Amadeus IT and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Amadeus IT and Squirrel Media 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 Squirrel Media 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 Squirrel Media SA, you can compare the effects of market volatilities on Amadeus IT and Squirrel Media 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 Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amadeus IT and Squirrel Media.
Diversification Opportunities for Amadeus IT and Squirrel Media
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amadeus and Squirrel is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Group and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media 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 Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Amadeus IT i.e., Amadeus IT and Squirrel Media go up and down completely randomly.
Pair Corralation between Amadeus IT and Squirrel Media
Assuming the 90 days trading horizon Amadeus IT Group is expected to generate 0.51 times more return on investment than Squirrel Media. However, Amadeus IT Group is 1.96 times less risky than Squirrel Media. It trades about -0.16 of its potential returns per unit of risk. Squirrel Media SA is currently generating about -0.14 per unit of risk. If you would invest 6,852 in Amadeus IT Group on August 28, 2024 and sell it today you would lose (222.00) from holding Amadeus IT Group or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amadeus IT Group vs. Squirrel Media SA
Performance |
| Timeline |
| Amadeus IT Group |
| Squirrel Media SA |
Amadeus IT and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amadeus IT and Squirrel Media
The main advantage of trading using opposite Amadeus IT and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amadeus IT position performs unexpectedly, Squirrel Media 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.| Amadeus IT vs. Aena SA | Amadeus IT vs. Grifols SA | Amadeus IT vs. Industria de Diseno | Amadeus IT vs. Ferrovial |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |