Correlation Between IShares ATX and AT S
Can any of the company-specific risk be diversified away by investing in both IShares ATX and AT S 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 IShares ATX and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ATX UCITS and AT S Austria, you can compare the effects of market volatilities on IShares ATX and AT S 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 IShares ATX with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ATX and AT S.
Diversification Opportunities for IShares ATX and AT S
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and ATS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding iShares ATX UCITS and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and IShares ATX 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 iShares ATX UCITS are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of IShares ATX i.e., IShares ATX and AT S go up and down completely randomly.
Pair Corralation between IShares ATX and AT S
Assuming the 90 days trading horizon iShares ATX UCITS is expected to generate 0.37 times more return on investment than AT S. However, iShares ATX UCITS is 2.7 times less risky than AT S. It trades about 0.03 of its potential returns per unit of risk. AT S Austria is currently generating about -0.35 per unit of risk. If you would invest 3,758 in iShares ATX UCITS on September 2, 2024 and sell it today you would earn a total of 19.00 from holding iShares ATX UCITS or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares ATX UCITS vs. AT S Austria
Performance |
| Timeline |
| iShares ATX UCITS |
| AT S Austria |
IShares ATX and AT S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ATX and AT S
The main advantage of trading using opposite IShares ATX and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ATX position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.The idea behind iShares ATX UCITS and AT S Austria pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AT S vs. Voestalpine AG | AT S vs. Lenzing Aktiengesellschaft | AT S vs. Andritz AG | AT S vs. OMV Aktiengesellschaft |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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