Correlation Between AMG Advanced and Alior Bank

Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Alior Bank 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 AMG Advanced and Alior Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMG Advanced Metallurgical and Alior Bank SA, you can compare the effects of market volatilities on AMG Advanced and Alior Bank 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 AMG Advanced with a short position of Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Alior Bank.

Diversification Opportunities for AMG Advanced and Alior Bank

0.14

Correlation Coefficient

AMG Advanced  Alior Bank

Average diversification

The 3 months correlation between AMG and Alior is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank SA and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of AMG Advanced i.e., AMG Advanced and Alior Bank go up and down completely randomly.

Pair Corralation between AMG Advanced and Alior Bank

Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 0.83 times more return on investment than Alior Bank. However, AMG Advanced Metallurgical is 1.21 times less risky than Alior Bank. It trades about 0.07 of its potential returns per unit of risk. Alior Bank SA is currently generating about 0.02 per unit of risk. If you would invest  1,373  in AMG Advanced Metallurgical on December 30, 2024 and sell it today you would earn a total of  190.00  from holding AMG Advanced Metallurgical or generate 13.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AMG Advanced Metallurgical  vs.  Alior Bank SA

AMG Advanced Metallu

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AMG Advanced Metallurgical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AMG Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Alior Bank SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alior Bank SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Alior Bank may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AMG Advanced and Alior Bank

The main advantage of trading using opposite AMG Advanced and Alior Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Alior Bank 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 Alior Bank will offset losses from the drop in Alior Bank's long position.

The idea behind AMG Advanced Metallurgical and Alior Bank SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.