Correlation Between Ams AG and Aeluma
Can any of the company-specific risk be diversified away by investing in both Ams AG and Aeluma 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 Aeluma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ams AG and Aeluma Inc, you can compare the effects of market volatilities on Ams AG and Aeluma 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 Aeluma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and Aeluma.
Diversification Opportunities for Ams AG and Aeluma
Average diversification
The 3 months correlation between Ams and Aeluma is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ams AG and Aeluma Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeluma Inc 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 Aeluma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeluma Inc has no effect on the direction of Ams AG i.e., Ams AG and Aeluma go up and down completely randomly.
Pair Corralation between Ams AG and Aeluma
Assuming the 90 days horizon ams AG is expected to generate 30.15 times more return on investment than Aeluma. However, Ams AG is 30.15 times more volatile than Aeluma Inc. It trades about 0.29 of its potential returns per unit of risk. Aeluma Inc is currently generating about 0.05 per unit of risk. If you would invest 810.00 in ams AG on August 29, 2024 and sell it today you would lose (65.00) from holding ams AG or give up 8.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ams AG vs. Aeluma Inc
Performance |
| Timeline |
| ams AG |
| Aeluma Inc |
Ams AG and Aeluma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ams AG and Aeluma
The main advantage of trading using opposite Ams AG and Aeluma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ams AG position performs unexpectedly, Aeluma 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 Aeluma will offset losses from the drop in Aeluma's long position.| Ams AG vs. Guerrilla RF | Ams AG vs. Odyssey Semiconductor Technologies | Ams AG vs. Archer Materials Limited | Ams AG vs. Alphawave IP Group |
| Aeluma vs. Archer Materials Limited | Aeluma vs. Alphawave IP Group | Aeluma vs. BrainChip Holdings | Aeluma vs. Arteris |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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