Correlation Between POSCO Holdings and Amplifon SpA
Can any of the company-specific risk be diversified away by investing in both POSCO Holdings and Amplifon SpA 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 POSCO Holdings and Amplifon SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POSCO Holdings and Amplifon SpA, you can compare the effects of market volatilities on POSCO Holdings and Amplifon SpA 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 POSCO Holdings with a short position of Amplifon SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Amplifon SpA.
Diversification Opportunities for POSCO Holdings and Amplifon SpA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POSCO and Amplifon is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Amplifon SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplifon SpA and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Amplifon SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplifon SpA has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Amplifon SpA go up and down completely randomly.
Pair Corralation between POSCO Holdings and Amplifon SpA
If you would invest 3,500 in Amplifon SpA on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Amplifon SpA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
POSCO Holdings vs. Amplifon SpA
Performance |
| Timeline |
| POSCO Holdings |
| Amplifon SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
POSCO Holdings and Amplifon SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Amplifon SpA
The main advantage of trading using opposite POSCO Holdings and Amplifon SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Amplifon SpA 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 Amplifon SpA will offset losses from the drop in Amplifon SpA's long position.| POSCO Holdings vs. Olympic Steel | POSCO Holdings vs. Universal Stainless Alloy | POSCO Holdings vs. Outokumpu Oyj ADR | POSCO Holdings vs. Ternium SA ADR |
| Amplifon SpA vs. Sonida Senior Living | Amplifon SpA vs. Cumberland Pharmaceuticals | Amplifon SpA vs. Aquestive Therapeutics | Amplifon SpA vs. Cardinal Health |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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