Correlation Between Ams AG and U Blox
Can any of the company-specific risk be diversified away by investing in both Ams AG and U Blox 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 U Blox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ams AG and U Blox Holding, you can compare the effects of market volatilities on Ams AG and U Blox 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 U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and U Blox.
Diversification Opportunities for Ams AG and U Blox
Poor diversification
The 3 months correlation between Ams and UBXN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ams AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding 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 U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Ams AG i.e., Ams AG and U Blox go up and down completely randomly.
Pair Corralation between Ams AG and U Blox
Assuming the 90 days trading horizon Ams AG is expected to under-perform the U Blox. In addition to that, Ams AG is 3.2 times more volatile than U Blox Holding. It trades about -0.27 of its total potential returns per unit of risk. U Blox Holding is currently generating about 0.14 per unit of volatility. If you would invest 6,490 in U Blox Holding on September 4, 2024 and sell it today you would earn a total of 310.00 from holding U Blox Holding or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ams AG vs. U Blox Holding
Performance |
| Timeline |
| Ams AG |
| U Blox Holding |
Ams AG and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ams AG and U Blox
The main advantage of trading using opposite Ams AG and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ams AG position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox's 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 |
| U Blox vs. Implenia AG | U Blox vs. OC Oerlikon Corp | U Blox vs. Sulzer AG | U Blox vs. Swissquote Group Holding |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |