Correlation Between AMAG Austria and TOREX SEMICONDUCTOR

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and TOREX SEMICONDUCTOR 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 AMAG Austria and TOREX SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and TOREX SEMICONDUCTOR LTD, you can compare the effects of market volatilities on AMAG Austria and TOREX SEMICONDUCTOR 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 AMAG Austria with a short position of TOREX SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and TOREX SEMICONDUCTOR.

Diversification Opportunities for AMAG Austria and TOREX SEMICONDUCTOR

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between AMAG and TOREX is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and TOREX SEMICONDUCTOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOREX SEMICONDUCTOR LTD and AMAG Austria 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 AMAG Austria Metall are associated (or correlated) with TOREX SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOREX SEMICONDUCTOR LTD has no effect on the direction of AMAG Austria i.e., AMAG Austria and TOREX SEMICONDUCTOR go up and down completely randomly.

Pair Corralation between AMAG Austria and TOREX SEMICONDUCTOR

Assuming the 90 days horizon AMAG Austria Metall is expected to generate 0.35 times more return on investment than TOREX SEMICONDUCTOR. However, AMAG Austria Metall is 2.89 times less risky than TOREX SEMICONDUCTOR. It trades about 0.0 of its potential returns per unit of risk. TOREX SEMICONDUCTOR LTD is currently generating about -0.06 per unit of risk. If you would invest  2,400  in AMAG Austria Metall on October 8, 2024 and sell it today you would earn a total of  0.00  from holding AMAG Austria Metall or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AMAG Austria Metall  vs.  TOREX SEMICONDUCTOR LTD

 Performance 
       Timeline  
AMAG Austria Metall 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in AMAG Austria Metall are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AMAG Austria is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
TOREX SEMICONDUCTOR LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days TOREX SEMICONDUCTOR LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AMAG Austria and TOREX SEMICONDUCTOR Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AMAG Austria and TOREX SEMICONDUCTOR

The main advantage of trading using opposite AMAG Austria and TOREX SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR will offset losses from the drop in TOREX SEMICONDUCTOR's long position.
The idea behind AMAG Austria Metall and TOREX SEMICONDUCTOR LTD 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
CEOs Directory
Screen CEOs from public companies around the world
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine