Correlation Between Amata Public and Land

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

By analyzing existing cross correlation between Amata Public and Land and Houses, you can compare the effects of market volatilities on Amata Public and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amata Public and Land.

Diversification Opportunities for Amata Public and Land

-0.28

Correlation Coefficient

Amata Public  Land

Very good diversification

The 3 months correlation between Amata and Land is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amata Public and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Amata Public i.e., Amata Public and Land go up and down completely randomly.

Pair Corralation between Amata Public and Land

Assuming the 90 days trading horizon Amata Public is expected to generate 72.65 times more return on investment than Land. However, Amata Public is 72.65 times more volatile than Land and Houses. It trades about 0.12 of its potential returns per unit of risk. Land and Houses is currently generating about -0.02 per unit of risk. If you would invest  2,190  in Amata Public on August 31, 2024 and sell it today you would earn a total of  710.00  from holding Amata Public or generate 32.42% 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.  Land and Houses

Amata Public

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amata Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Amata Public sustained solid returns over the last few months and may actually be approaching a breakup point.

Land and Houses

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Land and Houses has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Land 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 Land

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

The idea behind Amata Public and Land and Houses 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.