Correlation Between AECOM TECHNOLOGY and Ipsen SA
Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY and Ipsen SA 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 AECOM TECHNOLOGY and Ipsen SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM TECHNOLOGY and Ipsen SA, you can compare the effects of market volatilities on AECOM TECHNOLOGY and Ipsen SA 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 AECOM TECHNOLOGY with a short position of Ipsen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and Ipsen SA.
Diversification Opportunities for AECOM TECHNOLOGY and Ipsen SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AECOM and Ipsen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and Ipsen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsen SA and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY are associated (or correlated) with Ipsen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsen SA has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and Ipsen SA go up and down completely randomly.
Pair Corralation between AECOM TECHNOLOGY and Ipsen SA
If you would invest 7,769 in AECOM TECHNOLOGY on January 9, 2025 and sell it today you would earn a total of 281.00 from holding AECOM TECHNOLOGY or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AECOM TECHNOLOGY vs. Ipsen SA
Performance |
| Timeline |
| AECOM TECHNOLOGY |
| Ipsen SA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
AECOM TECHNOLOGY and Ipsen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECOM TECHNOLOGY and Ipsen SA
The main advantage of trading using opposite AECOM TECHNOLOGY and Ipsen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY position performs unexpectedly, Ipsen SA 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 Ipsen SA will offset losses from the drop in Ipsen SA's long position.| AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Apple Inc | AECOM TECHNOLOGY vs. Microsoft |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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