Correlation Between Amata Public and SAF Special

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

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

Diversification Opportunities for Amata Public and SAF Special

-0.24

Correlation Coefficient

Amata Public  SAF Special

Very good diversification

The 3 months correlation between Amata and SAF is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amata Public and SAF Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAF Special Steel and Amata Public 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 Amata Public are associated (or correlated) with SAF Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAF Special Steel has no effect on the direction of Amata Public i.e., Amata Public and SAF Special go up and down completely randomly.

Pair Corralation between Amata Public and SAF Special

Assuming the 90 days trading horizon Amata Public is expected to under-perform the SAF Special. But the stock apears to be less risky and, when comparing its historical volatility, Amata Public is 5.56 times less risky than SAF Special. The stock trades about -0.13 of its potential returns per unit of risk. The SAF Special Steel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  51.00  in SAF Special Steel on December 21, 2024 and sell it today you would earn a total of  2.00  from holding SAF Special Steel or generate 3.92% return on investment over 90 days.

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

Amata Public  vs.  SAF Special Steel

Amata Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amata Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Amata Public is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

SAF Special Steel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SAF Special Steel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, SAF Special is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Amata Public and SAF Special

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

The idea behind Amata Public and SAF Special Steel 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.