Correlation Between Aumann AG and Arista Power
Can any of the company-specific risk be diversified away by investing in both Aumann AG and Arista Power 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 Arista Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumann AG and Arista Power, you can compare the effects of market volatilities on Aumann AG and Arista Power 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 Arista Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumann AG and Arista Power.
Diversification Opportunities for Aumann AG and Arista Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aumann and Arista is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aumann AG and Arista Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arista Power 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 Arista Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arista Power has no effect on the direction of Aumann AG i.e., Aumann AG and Arista Power go up and down completely randomly.
Pair Corralation between Aumann AG and Arista Power
If you would invest 1,050 in Aumann AG on November 3, 2024 and sell it today you would earn a total of 95.00 from holding Aumann AG or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aumann AG vs. Arista Power
Performance |
| Timeline |
| Aumann AG |
| Arista Power |
Aumann AG and Arista Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumann AG and Arista Power
The main advantage of trading using opposite Aumann AG and Arista Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumann AG position performs unexpectedly, Arista Power 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 Arista Power will offset losses from the drop in Arista Power'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 |
| Arista Power vs. Aumann AG | Arista Power vs. Alfa Laval AB | Arista Power vs. Atlas Copco AB | Arista Power vs. American Commerce Solutions |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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