Correlation Between Cboe UK and AMG Advanced
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By analyzing existing cross correlation between Cboe UK Consumer and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Cboe UK and AMG Advanced 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 Cboe UK with a short position of AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and AMG Advanced.
Diversification Opportunities for Cboe UK and AMG Advanced
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cboe and AMG is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Cboe UK i.e., Cboe UK and AMG Advanced go up and down completely randomly.
Pair Corralation between Cboe UK and AMG Advanced
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.39 times more return on investment than AMG Advanced. However, Cboe UK Consumer is 2.59 times less risky than AMG Advanced. It trades about 0.08 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.05 per unit of risk. If you would invest 2,262,055 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 980,936 from holding Cboe UK Consumer or generate 43.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.56% |
| Values | Daily Returns |
Cboe UK Consumer vs. AMG Advanced Metallurgical
Performance |
| Timeline |
Cboe UK and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
AMG Advanced Metallurgical
Pair trading matchups for AMG Advanced
Pair Trading with Cboe UK and AMG Advanced
The main advantage of trading using opposite Cboe UK and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Hyundai Motor | AMG Advanced vs. Toyota Motor Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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