Correlation Between Ams AG and Fair Oaks

Can any of the company-specific risk be diversified away by investing in both Ams AG and Fair Oaks 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 Ams AG and Fair Oaks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ams AG and Fair Oaks Income, you can compare the effects of market volatilities on Ams AG and Fair Oaks 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 Ams AG with a short position of Fair Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and Fair Oaks.

Diversification Opportunities for Ams AG and Fair Oaks

-0.78

Correlation Coefficient

Ams AG  Fair Oaks

Pay attention - limited upside

The 3 months correlation between Ams and Fair is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ams AG and Fair Oaks Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Oaks Income and Ams AG 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 Ams AG are associated (or correlated) with Fair Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Oaks Income has no effect on the direction of Ams AG i.e., Ams AG and Fair Oaks go up and down completely randomly.

Pair Corralation between Ams AG and Fair Oaks

Assuming the 90 days trading horizon Ams AG is expected to under-perform the Fair Oaks. In addition to that, Ams AG is 10.21 times more volatile than Fair Oaks Income. It trades about -0.13 of its total potential returns per unit of risk. Fair Oaks Income is currently generating about 0.13 per unit of volatility. If you would invest  55.00  in Fair Oaks Income on October 25, 2024 and sell it today you would earn a total of  2.00  from holding Fair Oaks Income or generate 3.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Ams AG  vs.  Fair Oaks Income

Ams AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ams AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Fair Oaks Income

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fair Oaks Income are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fair Oaks is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ams AG and Fair Oaks

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

The idea behind Ams AG and Fair Oaks Income 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.