Correlation Between Aumann AG and Ushio

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

By analyzing existing cross correlation between Aumann AG and Ushio Inc, you can compare the effects of market volatilities on Aumann AG and Ushio 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 Aumann AG with a short position of Ushio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumann AG and Ushio.

Diversification Opportunities for Aumann AG and Ushio

-0.29

Correlation Coefficient

Aumann AG  Ushio

Very good diversification

The 3 months correlation between Aumann and Ushio is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aumann AG and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc and Aumann AG 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 Aumann AG are associated (or correlated) with Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of Aumann AG i.e., Aumann AG and Ushio go up and down completely randomly.

Pair Corralation between Aumann AG and Ushio

Assuming the 90 days horizon Aumann AG is expected to under-perform the Ushio. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aumann AG is 1.65 times less risky than Ushio. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Ushio Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,302  in Ushio Inc on September 14, 2024 and sell it today you would earn a total of  98.00  from holding Ushio Inc or generate 7.53% return on investment over 90 days.

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

Aumann AG  vs.  Ushio Inc

Aumann AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aumann AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Aumann AG is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ushio Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ushio Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Ushio may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Aumann AG and Ushio

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

The idea behind Aumann AG and Ushio Inc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.