Correlation Between Asset Five and Amata Public

Can any of the company-specific risk be diversified away by investing in both Asset Five and Amata Public 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 Asset Five and Amata Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asset Five Group and Amata Public, you can compare the effects of market volatilities on Asset Five and Amata Public 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 Asset Five with a short position of Amata Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asset Five and Amata Public.

Diversification Opportunities for Asset Five and Amata Public

0.0

Correlation Coefficient

Asset Five  Amata Public

Pay attention - limited upside

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

Pair Corralation between Asset Five and Amata Public

If you would invest  2,270  in Amata Public on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Amata Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	47.37%
Values	Daily Returns

Asset Five Group  vs.  Amata Public

Asset Five Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asset Five Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Asset Five is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Amata Public

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Amata Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Amata Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Asset Five and Amata Public

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

The idea behind Asset Five Group and Amata Public 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .