Correlation Between Volkswagen and AMP
Can any of the company-specific risk be diversified away by investing in both Volkswagen and AMP 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 Volkswagen and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volkswagen AG Pref and AMP, you can compare the effects of market volatilities on Volkswagen and AMP 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 Volkswagen with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and AMP.
Diversification Opportunities for Volkswagen and AMP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and AMP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG Pref and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and Volkswagen 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 Volkswagen AG Pref are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Volkswagen i.e., Volkswagen and AMP go up and down completely randomly.
Pair Corralation between Volkswagen and AMP
If you would invest 1,014 in Volkswagen AG Pref on December 1, 2024 and sell it today you would earn a total of 57.00 from holding Volkswagen AG Pref or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Volkswagen AG Pref vs. AMP
Performance |
| Timeline |
| Volkswagen AG Pref |
| AMP |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Volkswagen and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and AMP
The main advantage of trading using opposite Volkswagen and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Volkswagen vs. Volkswagen AG 110 | Volkswagen vs. Porsche Automobil Holding | Volkswagen vs. Ferrari NV | Volkswagen vs. Porsche Automobile Holding |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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