Correlation Between Duro Felguera and Amper SA
Can any of the company-specific risk be diversified away by investing in both Duro Felguera 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 Duro Felguera and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duro Felguera and Amper SA, you can compare the effects of market volatilities on Duro Felguera 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 Duro Felguera with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duro Felguera and Amper SA.
Diversification Opportunities for Duro Felguera and Amper SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duro and Amper is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Duro Felguera and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Duro Felguera 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 Duro Felguera 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 Duro Felguera i.e., Duro Felguera and Amper SA go up and down completely randomly.
Pair Corralation between Duro Felguera and Amper SA
Assuming the 90 days trading horizon Duro Felguera is expected to under-perform the Amper SA. But the stock apears to be less risky and, when comparing its historical volatility, Duro Felguera is 1.21 times less risky than Amper SA. The stock trades about -0.02 of its potential returns per unit of risk. The Amper SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Amper SA on August 24, 2024 and sell it today you would lose (4.00) from holding Amper SA or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duro Felguera vs. Amper SA
Performance |
| Timeline |
| Duro Felguera |
| Amper SA |
Duro Felguera and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duro Felguera and Amper SA
The main advantage of trading using opposite Duro Felguera and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duro Felguera 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.| Duro Felguera vs. Ebro Foods | Duro Felguera vs. Cellnex Telecom SA | Duro Felguera vs. Arteche Lantegi Elkartea | Duro Felguera vs. Atrys Health SL |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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