Correlation Between Amper SA and NBI Bearings

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

By analyzing existing cross correlation between Amper SA and NBI Bearings Europe, you can compare the effects of market volatilities on Amper SA and NBI Bearings 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 Amper SA with a short position of NBI Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amper SA and NBI Bearings.

Diversification Opportunities for Amper SA and NBI Bearings

0.04

Correlation Coefficient

Amper SA  NBI Bearings

Significant diversification

The 3 months correlation between Amper and NBI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amper SA and NBI Bearings Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI Bearings Europe and Amper SA 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 Amper SA are associated (or correlated) with NBI Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI Bearings Europe has no effect on the direction of Amper SA i.e., Amper SA and NBI Bearings go up and down completely randomly.

Pair Corralation between Amper SA and NBI Bearings

If you would invest  11.00  in Amper SA on October 9, 2024 and sell it today you would earn a total of  1.00  from holding Amper SA or generate 9.09% return on investment over 90 days.

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

Amper SA  vs.  NBI Bearings Europe

Amper SA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Amper SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

NBI Bearings Europe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NBI Bearings Europe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Amper SA and NBI Bearings

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

The idea behind Amper SA and NBI Bearings Europe 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.