Correlation Between OURGAME INTHOLDL-00005 and Aurubis AG

Can any of the company-specific risk be diversified away by investing in both OURGAME INTHOLDL-00005 and Aurubis 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 OURGAME INTHOLDL-00005 and Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OURGAME INTHOLDL 00005 and Aurubis AG, you can compare the effects of market volatilities on OURGAME INTHOLDL-00005 and Aurubis 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 OURGAME INTHOLDL-00005 with a short position of Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OURGAME INTHOLDL-00005 and Aurubis AG.

Diversification Opportunities for OURGAME INTHOLDL-00005 and Aurubis AG

0.0

Correlation Coefficient

OURGAME INTHOLDL-00005  Aurubis AG

Pay attention - limited upside

The 3 months correlation between OURGAME and Aurubis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OURGAME INTHOLDL 00005 and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG and OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL 00005 are associated (or correlated) with Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of OURGAME INTHOLDL-00005 i.e., OURGAME INTHOLDL-00005 and Aurubis AG go up and down completely randomly.

Pair Corralation between OURGAME INTHOLDL-00005 and Aurubis AG

Assuming the 90 days horizon OURGAME INTHOLDL 00005 is expected to generate 4.73 times more return on investment than Aurubis AG. However, OURGAME INTHOLDL-00005 is 4.73 times more volatile than Aurubis AG. It trades about 0.04 of its potential returns per unit of risk. Aurubis AG is currently generating about 0.01 per unit of risk. If you would invest  2.10  in OURGAME INTHOLDL 00005 on September 30, 2024 and sell it today you would lose (0.50) from holding OURGAME INTHOLDL 00005 or give up 23.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

OURGAME INTHOLDL 00005  vs.  Aurubis AG

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL-00005 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Aurubis AG

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aurubis AG are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Aurubis AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OURGAME INTHOLDL-00005 and Aurubis AG

The main advantage of trading using opposite OURGAME INTHOLDL-00005 and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OURGAME INTHOLDL-00005 position performs unexpectedly, Aurubis 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.

The idea behind OURGAME INTHOLDL 00005 and Aurubis AG 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.