Correlation Between CHINA TONTINE and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and AMAG Austria 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 CHINA TONTINE and AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and AMAG Austria Metall, you can compare the effects of market volatilities on CHINA TONTINE and AMAG Austria 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 CHINA TONTINE with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and AMAG Austria.
Diversification Opportunities for CHINA TONTINE and AMAG Austria
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and AMAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall and CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and AMAG Austria go up and down completely randomly.
Pair Corralation between CHINA TONTINE and AMAG Austria
If you would invest 2,390 in AMAG Austria Metall on October 28, 2024 and sell it today you would earn a total of 0.00 from holding AMAG Austria Metall or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. AMAG Austria Metall
Performance |
| Timeline |
| CHINA TONTINE WINES |
| AMAG Austria Metall |
CHINA TONTINE and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and AMAG Austria
The main advantage of trading using opposite CHINA TONTINE and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, AMAG Austria 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 AMAG Austria will offset losses from the drop in AMAG Austria's long position.| CHINA TONTINE vs. Goodyear Tire Rubber | CHINA TONTINE vs. Automatic Data Processing | CHINA TONTINE vs. NEWELL RUBBERMAID | CHINA TONTINE vs. SCANSOURCE |
| AMAG Austria vs. Delta Electronics Public | AMAG Austria vs. Benchmark Electronics | AMAG Austria vs. LPKF Laser Electronics | AMAG Austria vs. Motorcar Parts of |
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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