Correlation Between Centaur Media and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Centaur Media and AMG Advanced 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 Centaur Media and AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Centaur Media 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 Centaur Media with a short position of AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and AMG Advanced.
Diversification Opportunities for Centaur Media and AMG Advanced
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Centaur and AMG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media 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 Centaur Media 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 Centaur Media 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 Centaur Media i.e., Centaur Media and AMG Advanced go up and down completely randomly.
Pair Corralation between Centaur Media and AMG Advanced
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the AMG Advanced. In addition to that, Centaur Media is 1.11 times more volatile than AMG Advanced Metallurgical. It trades about -0.15 of its total potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.01 per unit of volatility. If you would invest 1,475 in AMG Advanced Metallurgical on September 2, 2024 and sell it today you would lose (62.00) from holding AMG Advanced Metallurgical or give up 4.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Centaur Media |
| AMG Advanced Metallu |
Centaur Media and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and AMG Advanced
The main advantage of trading using opposite Centaur Media and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media 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.| Centaur Media vs. FC Investment Trust | Centaur Media vs. MoneysupermarketCom Group PLC | Centaur Media vs. Molson Coors Beverage | Centaur Media vs. CAP LEASE AVIATION |
| AMG Advanced vs. Uniper SE | AMG Advanced vs. Mulberry Group PLC | AMG Advanced vs. London Security Plc | AMG Advanced vs. Triad Group PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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