Correlation Between IXICO PLC and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both IXICO PLC and AMG Advanced 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 IXICO PLC and AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IXICO PLC and AMG Advanced Metallurgical, you can compare the effects of market volatilities on IXICO PLC and AMG Advanced 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 IXICO PLC with a short position of AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of IXICO PLC and AMG Advanced.
Diversification Opportunities for IXICO PLC and AMG Advanced
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IXICO and AMG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding IXICO PLC and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu and IXICO PLC 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 IXICO PLC are associated (or correlated) with AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of IXICO PLC i.e., IXICO PLC and AMG Advanced go up and down completely randomly.
Pair Corralation between IXICO PLC and AMG Advanced
Assuming the 90 days trading horizon IXICO PLC is expected to under-perform the AMG Advanced. In addition to that, IXICO PLC is 1.33 times more volatile than AMG Advanced Metallurgical. It trades about -0.01 of its total potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about 0.0 per unit of volatility. If you would invest 1,943 in AMG Advanced Metallurgical on December 7, 2024 and sell it today you would lose (268.00) from holding AMG Advanced Metallurgical or give up 13.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IXICO PLC vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| IXICO PLC |
| AMG Advanced Metallu |
IXICO PLC and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IXICO PLC and AMG Advanced
The main advantage of trading using opposite IXICO PLC and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IXICO PLC position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| IXICO PLC vs. Capital Drilling | IXICO PLC vs. PPHE Hotel Group | IXICO PLC vs. JB Hunt Transport | IXICO PLC vs. Gaztransport et Technigaz |
| AMG Advanced vs. Mobile Tornado Group | AMG Advanced vs. Wyndham Hotels Resorts | AMG Advanced vs. Dalata Hotel Group | AMG Advanced vs. Gaming Realms plc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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