Correlation Between AMG Advanced and Azerion Group

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

By analyzing existing cross correlation between AMG Advanced Metallurgical and Azerion Group NV, you can compare the effects of market volatilities on AMG Advanced and Azerion Group 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 AMG Advanced with a short position of Azerion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Azerion Group.

Diversification Opportunities for AMG Advanced and Azerion Group

0.0

Correlation Coefficient

AMG Advanced  Azerion Group

Pay attention - limited upside

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

Pair Corralation between AMG Advanced and Azerion Group

If you would invest  1,406  in AMG Advanced Metallurgical on September 5, 2024 and sell it today you would earn a total of  55.00  from holding AMG Advanced Metallurgical or generate 3.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AMG Advanced Metallurgical  vs.  Azerion Group NV

AMG Advanced Metallu

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMG Advanced Metallurgical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, AMG Advanced is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Azerion Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azerion Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Azerion Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with AMG Advanced and Azerion Group

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

The idea behind AMG Advanced Metallurgical and Azerion Group NV 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.