Correlation Between Andritz AG and AT S
Can any of the company-specific risk be diversified away by investing in both Andritz AG and AT S 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 Andritz AG and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andritz AG and AT S Austria, you can compare the effects of market volatilities on Andritz AG and AT S 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 Andritz AG with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andritz AG and AT S.
Diversification Opportunities for Andritz AG and AT S
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Andritz and ATS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Andritz AG and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and Andritz 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 Andritz AG are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Andritz AG i.e., Andritz AG and AT S go up and down completely randomly.
Pair Corralation between Andritz AG and AT S
Assuming the 90 days trading horizon Andritz AG is expected to generate 0.56 times more return on investment than AT S. However, Andritz AG is 1.77 times less risky than AT S. It trades about -0.03 of its potential returns per unit of risk. AT S Austria is currently generating about -0.05 per unit of risk. If you would invest 5,810 in Andritz AG on August 27, 2024 and sell it today you would lose (605.00) from holding Andritz AG or give up 10.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andritz AG vs. AT S Austria
Performance |
| Timeline |
| Andritz AG |
| AT S Austria |
Andritz AG and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andritz AG and AT S
The main advantage of trading using opposite Andritz AG and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andritz AG position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.| Andritz AG vs. Voestalpine AG | Andritz AG vs. VERBUND AG | Andritz AG vs. OMV Aktiengesellschaft | Andritz AG vs. Wienerberger AG |
| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |