Correlation Between American Superconductor and Aumann AG
Can any of the company-specific risk be diversified away by investing in both American Superconductor and Aumann AG 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 American Superconductor and Aumann AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Superconductor and Aumann AG, you can compare the effects of market volatilities on American Superconductor and Aumann AG 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 American Superconductor with a short position of Aumann AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Superconductor and Aumann AG.
Diversification Opportunities for American Superconductor and Aumann AG
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Aumann is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Superconductor and Aumann AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aumann AG and American Superconductor 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 American Superconductor are associated (or correlated) with Aumann AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aumann AG has no effect on the direction of American Superconductor i.e., American Superconductor and Aumann AG go up and down completely randomly.
Pair Corralation between American Superconductor and Aumann AG
If you would invest 1,300 in Aumann AG on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Aumann AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Superconductor vs. Aumann AG
Performance |
| Timeline |
| American Superconductor |
| Aumann AG |
American Superconductor and Aumann AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Superconductor and Aumann AG
The main advantage of trading using opposite American Superconductor and Aumann AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Superconductor position performs unexpectedly, Aumann AG 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 Aumann AG will offset losses from the drop in Aumann AG's long position.| American Superconductor vs. Nel ASA | American Superconductor vs. Graham | American Superconductor vs. Watts Water Technologies | American Superconductor vs. CVD Equipment |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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