Correlation Between Ams AG and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Ams AG and Dow Jones 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 Ams AG and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ams AG and Dow Jones Industrial, you can compare the effects of market volatilities on Ams AG and Dow Jones 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 Ams AG with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and Dow Jones.
Diversification Opportunities for Ams AG and Dow Jones
Excellent diversification
The 3 months correlation between Ams and Dow is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ams AG and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Ams AG 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 Ams AG are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Ams AG i.e., Ams AG and Dow Jones go up and down completely randomly.
Pair Corralation between Ams AG and Dow Jones
Assuming the 90 days trading horizon Ams AG is expected to under-perform the Dow Jones. In addition to that, Ams AG is 5.16 times more volatile than Dow Jones Industrial. It trades about -0.46 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ams AG vs. Dow Jones Industrial
Performance |
| Timeline |
Ams AG and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ams AG
Pair trading matchups for Ams AG
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ams AG and Dow Jones
The main advantage of trading using opposite Ams AG and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ams AG position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Ams AG vs. Logitech International SA | Ams AG vs. Temenos Group AG | Ams AG vs. Swiss Re AG | Ams AG vs. UBS Group AG |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |