Correlation Between DO Aktiengesellscha and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both DO Aktiengesellscha 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 DO Aktiengesellscha and AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DO Aktiengesellschaft and AMAG Austria Metall, you can compare the effects of market volatilities on DO Aktiengesellscha 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 DO Aktiengesellscha with a short position of AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Aktiengesellscha and AMAG Austria.
Diversification Opportunities for DO Aktiengesellscha and AMAG Austria
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DOC and AMAG is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DO Aktiengesellschaft 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 DO Aktiengesellscha 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 DO Aktiengesellschaft 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 DO Aktiengesellscha i.e., DO Aktiengesellscha and AMAG Austria go up and down completely randomly.
Pair Corralation between DO Aktiengesellscha and AMAG Austria
Assuming the 90 days trading horizon DO Aktiengesellschaft is expected to generate 1.88 times more return on investment than AMAG Austria. However, DO Aktiengesellscha is 1.88 times more volatile than AMAG Austria Metall. It trades about 0.05 of its potential returns per unit of risk. AMAG Austria Metall is currently generating about -0.05 per unit of risk. If you would invest 12,600 in DO Aktiengesellschaft on August 26, 2024 and sell it today you would earn a total of 3,200 from holding DO Aktiengesellschaft or generate 25.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Aktiengesellschaft vs. AMAG Austria Metall
Performance |
| Timeline |
| DO Aktiengesellschaft |
| AMAG Austria Metall |
DO Aktiengesellscha and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Aktiengesellscha and AMAG Austria
The main advantage of trading using opposite DO Aktiengesellscha and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Aktiengesellscha 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.| DO Aktiengesellscha vs. Lenzing Aktiengesellschaft | DO Aktiengesellscha vs. Schoeller Bleckmann Oilfield Equipment | DO Aktiengesellscha vs. Andritz AG | DO Aktiengesellscha vs. Voestalpine AG |
| AMAG Austria vs. Lenzing Aktiengesellschaft | AMAG Austria vs. Voestalpine AG | AMAG Austria vs. EVN AG | AMAG Austria vs. Facc AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |