Correlation Between AMS Small and DGB Group
Can any of the company-specific risk be diversified away by investing in both AMS Small and DGB Group 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 Small and DGB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMS Small Cap and DGB Group NV, you can compare the effects of market volatilities on AMS Small and DGB Group 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 Small with a short position of DGB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMS Small and DGB Group.
Diversification Opportunities for AMS Small and DGB Group
Very good diversification
The 3 months correlation between AMS and DGB is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding AMS Small Cap and DGB Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGB Group NV and AMS Small 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 Small Cap are associated (or correlated) with DGB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGB Group NV has no effect on the direction of AMS Small i.e., AMS Small and DGB Group go up and down completely randomly.
Pair Corralation between AMS Small and DGB Group
Assuming the 90 days trading horizon AMS Small Cap is expected to under-perform the DGB Group. But the index apears to be less risky and, when comparing its historical volatility, AMS Small Cap is 3.03 times less risky than DGB Group. The index trades about -0.03 of its potential returns per unit of risk. The DGB Group NV is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 69.00 in DGB Group NV on August 31, 2024 and sell it today you would earn a total of 15.00 from holding DGB Group NV or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMS Small Cap vs. DGB Group NV
Performance |
| Timeline |
AMS Small and DGB Group Volatility Contrast
Predicted Return Density |
| Returns |
AMS Small Cap
Pair trading matchups for AMS Small
DGB Group NV
Pair trading matchups for DGB Group
Pair Trading with AMS Small and DGB Group
The main advantage of trading using opposite AMS Small and DGB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMS Small position performs unexpectedly, DGB Group 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 DGB Group will offset losses from the drop in DGB Group's long position.| AMS Small vs. AMG Advanced Metallurgical | AMS Small vs. Vastned Retail NV | AMS Small vs. Reinet Investments SCA | AMS Small vs. Tetragon Financial Group |
| DGB Group vs. Ease2pay NV | DGB Group vs. Alumexx NV | DGB Group vs. Ctac NV | DGB Group vs. Hydratec Industries NV |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| 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 | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |