Correlation Between Atom Hoteles and Amper SA
Can any of the company-specific risk be diversified away by investing in both Atom Hoteles 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 Atom Hoteles and Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atom Hoteles Socimi and Amper SA, you can compare the effects of market volatilities on Atom Hoteles 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 Atom Hoteles with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atom Hoteles and Amper SA.
Diversification Opportunities for Atom Hoteles and Amper SA
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atom and Amper is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Atom Hoteles Socimi and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Atom Hoteles 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 Atom Hoteles Socimi 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 Atom Hoteles i.e., Atom Hoteles and Amper SA go up and down completely randomly.
Pair Corralation between Atom Hoteles and Amper SA
Assuming the 90 days trading horizon Atom Hoteles Socimi is expected to generate 2.63 times more return on investment than Amper SA. However, Atom Hoteles is 2.63 times more volatile than Amper SA. It trades about 0.05 of its potential returns per unit of risk. Amper SA is currently generating about 0.03 per unit of risk. If you would invest 1,039 in Atom Hoteles Socimi on September 2, 2024 and sell it today you would earn a total of 351.00 from holding Atom Hoteles Socimi or generate 33.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atom Hoteles Socimi vs. Amper SA
Performance |
| Timeline |
| Atom Hoteles Socimi |
| Amper SA |
Atom Hoteles and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atom Hoteles and Amper SA
The main advantage of trading using opposite Atom Hoteles and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atom Hoteles 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.| Atom Hoteles vs. Melia Hotels | Atom Hoteles vs. Atrys Health SL | Atom Hoteles vs. Ebro Foods | Atom Hoteles vs. Aedas Homes 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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