Correlation Between Aumann AG and Ushio
Can any of the company-specific risk be diversified away by investing in both Aumann AG and Ushio 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 Ushio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumann AG and Ushio Inc, you can compare the effects of market volatilities on Aumann AG and Ushio 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 Ushio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumann AG and Ushio.
Diversification Opportunities for Aumann AG and Ushio
Very good diversification
The 3 months correlation between Aumann and Ushio is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aumann AG and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc 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 Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of Aumann AG i.e., Aumann AG and Ushio go up and down completely randomly.
Pair Corralation between Aumann AG and Ushio
Assuming the 90 days horizon Aumann AG is expected to under-perform the Ushio. In addition to that, Aumann AG is 1.35 times more volatile than Ushio Inc. It trades about -0.06 of its total potential returns per unit of risk. Ushio Inc is currently generating about 0.05 per unit of volatility. If you would invest 1,223 in Ushio Inc on September 12, 2024 and sell it today you would earn a total of 177.00 from holding Ushio Inc or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aumann AG vs. Ushio Inc
Performance |
| Timeline |
| Aumann AG |
| Ushio Inc |
Aumann AG and Ushio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumann AG and Ushio
The main advantage of trading using opposite Aumann AG and Ushio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumann AG position performs unexpectedly, Ushio 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 Ushio will offset losses from the drop in Ushio's long position.| Aumann AG vs. Xinjiang Goldwind Science | Aumann AG vs. American Superconductor | Aumann AG vs. Cummins | Aumann AG vs. Aquagold International |
| Ushio vs. Xinjiang Goldwind Science | Ushio vs. American Superconductor | Ushio vs. Cummins | Ushio vs. Aquagold 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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