Correlation Between Amphenol and Ferrovial
Can any of the company-specific risk be diversified away by investing in both Amphenol and Ferrovial 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 Amphenol and Ferrovial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphenol and Ferrovial SA, you can compare the effects of market volatilities on Amphenol and Ferrovial 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 Amphenol with a short position of Ferrovial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphenol and Ferrovial.
Diversification Opportunities for Amphenol and Ferrovial
Very good diversification
The 3 months correlation between Amphenol and Ferrovial is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amphenol and Ferrovial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrovial SA and Amphenol 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 Amphenol are associated (or correlated) with Ferrovial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrovial SA has no effect on the direction of Amphenol i.e., Amphenol and Ferrovial go up and down completely randomly.
Pair Corralation between Amphenol and Ferrovial
Considering the 90-day investment horizon Amphenol is expected to generate 0.68 times more return on investment than Ferrovial. However, Amphenol is 1.48 times less risky than Ferrovial. It trades about 0.1 of its potential returns per unit of risk. Ferrovial SA is currently generating about 0.05 per unit of risk. If you would invest 3,900 in Amphenol on August 26, 2024 and sell it today you would earn a total of 3,529 from holding Amphenol or generate 90.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.79% |
| Values | Daily Returns |
Amphenol vs. Ferrovial SA
Performance |
| Timeline |
| Amphenol |
| Ferrovial SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amphenol and Ferrovial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphenol and Ferrovial
The main advantage of trading using opposite Amphenol and Ferrovial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphenol position performs unexpectedly, Ferrovial 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 Ferrovial will offset losses from the drop in Ferrovial's long position.| Amphenol vs. Plexus Corp | Amphenol vs. Benchmark Electronics | Amphenol vs. Jabil Circuit | Amphenol vs. Sanmina |
| Ferrovial vs. Vinci SA ADR | Ferrovial vs. Geberit AG ADR | Ferrovial vs. Kone Oyj ADR | Ferrovial vs. Kuehne Nagel International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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