Correlation Between Izertis Sa and Amper SA

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

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

Diversification Opportunities for Izertis Sa and Amper SA

-0.58

Correlation Coefficient

Izertis Sa  Amper SA

Excellent diversification

The 3 months correlation between Izertis and Amper is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Izertis Sa and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Izertis 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 Izertis Sa are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Izertis Sa i.e., Izertis Sa and Amper SA go up and down completely randomly.

Pair Corralation between Izertis Sa and Amper SA

Assuming the 90 days trading horizon Izertis Sa is expected to under-perform the Amper SA. But the stock apears to be less risky and, when comparing its historical volatility, Izertis Sa is 7.03 times less risky than Amper SA. The stock trades about -0.16 of its potential returns per unit of risk. The Amper SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  9.88  in Amper SA on September 4, 2024 and sell it today you would earn a total of  0.12  from holding Amper SA or generate 1.21% return on investment over 90 days.

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

Izertis Sa  vs.  Amper SA

Izertis Sa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Izertis Sa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Izertis Sa is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Amper SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Amper SA is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Izertis Sa and Amper SA

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

The idea behind Izertis Sa and Amper SA 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.