Correlation Between Aumann AG and Amada
Can any of the company-specific risk be diversified away by investing in both Aumann AG and Amada 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 Aumann AG and Amada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumann AG and Amada Co, you can compare the effects of market volatilities on Aumann AG and Amada 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 Aumann AG with a short position of Amada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumann AG and Amada.
Diversification Opportunities for Aumann AG and Amada
Very good diversification
The 3 months correlation between Aumann and Amada is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aumann AG and Amada Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amada and Aumann 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 Aumann AG are associated (or correlated) with Amada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amada has no effect on the direction of Aumann AG i.e., Aumann AG and Amada go up and down completely randomly.
Pair Corralation between Aumann AG and Amada
If you would invest 1,300 in Aumann AG on September 5, 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 | 100.0% |
| Values | Daily Returns |
Aumann AG vs. Amada Co
Performance |
| Timeline |
| Aumann AG |
| Amada |
Aumann AG and Amada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumann AG and Amada
The main advantage of trading using opposite Aumann AG and Amada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumann AG position performs unexpectedly, Amada 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 Amada will offset losses from the drop in Amada's long position.| Aumann AG vs. Alfa Laval AB | Aumann AG vs. Arista Power | Aumann AG vs. Atlas Copco AB | Aumann AG vs. American Commerce Solutions |
| Amada vs. Dear Cashmere Holding | Amada vs. Goff Corp | Amada vs. Wialan Technologies | Amada vs. Cgrowth Capital |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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