Correlation Between Temenos Group and Ams AG
Can any of the company-specific risk be diversified away by investing in both Temenos Group and Ams AG 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 Temenos Group and Ams AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Temenos Group AG and Ams AG, you can compare the effects of market volatilities on Temenos Group and Ams AG 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 Temenos Group with a short position of Ams AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Temenos Group and Ams AG.
Diversification Opportunities for Temenos Group and Ams AG
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Temenos and Ams is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Temenos Group AG and Ams AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ams AG and Temenos Group 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 Temenos Group AG are associated (or correlated) with Ams AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ams AG has no effect on the direction of Temenos Group i.e., Temenos Group and Ams AG go up and down completely randomly.
Pair Corralation between Temenos Group and Ams AG
Assuming the 90 days trading horizon Temenos Group AG is expected to generate 0.64 times more return on investment than Ams AG. However, Temenos Group AG is 1.56 times less risky than Ams AG. It trades about -0.05 of its potential returns per unit of risk. Ams AG is currently generating about -0.1 per unit of risk. If you would invest 8,631 in Temenos Group AG on August 29, 2024 and sell it today you would lose (2,996) from holding Temenos Group AG or give up 34.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Temenos Group AG vs. Ams AG
Performance |
| Timeline |
| Temenos Group AG |
| Ams AG |
Temenos Group and Ams AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Temenos Group and Ams AG
The main advantage of trading using opposite Temenos Group and Ams AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Temenos Group position performs unexpectedly, Ams AG 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 Ams AG will offset losses from the drop in Ams AG's long position.| Temenos Group vs. Logitech International SA | Temenos Group vs. Straumann Holding AG | Temenos Group vs. Geberit AG | Temenos Group vs. VAT Group AG |
| Ams AG vs. Logitech International SA | Ams AG vs. Temenos Group AG | Ams AG vs. Swiss Re AG | Ams AG vs. UBS Group AG |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |