Correlation Between Gigas Hosting and Amper SA
Can any of the company-specific risk be diversified away by investing in both Gigas Hosting and Amper 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 Gigas Hosting and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigas Hosting SA and Amper SA, you can compare the effects of market volatilities on Gigas Hosting and Amper 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 Gigas Hosting with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigas Hosting and Amper SA.
Diversification Opportunities for Gigas Hosting and Amper SA
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gigas and Amper is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Gigas Hosting SA and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Gigas Hosting 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 Gigas Hosting SA are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Gigas Hosting i.e., Gigas Hosting and Amper SA go up and down completely randomly.
Pair Corralation between Gigas Hosting and Amper SA
Assuming the 90 days trading horizon Gigas Hosting SA is expected to under-perform the Amper SA. But the stock apears to be less risky and, when comparing its historical volatility, Gigas Hosting SA is 1.79 times less risky than Amper SA. The stock trades about -0.06 of its potential returns per unit of risk. The Amper SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Amper SA on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Amper SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigas Hosting SA vs. Amper SA
Performance |
| Timeline |
| Gigas Hosting SA |
| Amper SA |
Gigas Hosting and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigas Hosting and Amper SA
The main advantage of trading using opposite Gigas Hosting and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigas Hosting position performs unexpectedly, Amper 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 Amper SA will offset losses from the drop in Amper SA's long position.| Gigas Hosting vs. Metrovacesa SA | Gigas Hosting vs. Endurance Motive SA | Gigas Hosting vs. Elecnor SA | Gigas Hosting vs. Mapfre |
| Amper SA vs. Ercros | Amper SA vs. Urbas Grupo Financiero | Amper SA vs. Duro Felguera | Amper SA vs. ENCE Energa y |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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