Correlation Between Aurubis AG and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both Aurubis AG and ATRESMEDIA 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 Aurubis AG and ATRESMEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurubis AG and ATRESMEDIA, you can compare the effects of market volatilities on Aurubis AG and ATRESMEDIA 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 Aurubis AG with a short position of ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis AG and ATRESMEDIA.
Diversification Opportunities for Aurubis AG and ATRESMEDIA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurubis and ATRESMEDIA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis AG and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA and Aurubis 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 Aurubis AG are associated (or correlated) with ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of Aurubis AG i.e., Aurubis AG and ATRESMEDIA go up and down completely randomly.
Pair Corralation between Aurubis AG and ATRESMEDIA
Assuming the 90 days trading horizon Aurubis AG is expected to under-perform the ATRESMEDIA. In addition to that, Aurubis AG is 1.7 times more volatile than ATRESMEDIA. It trades about 0.0 of its total potential returns per unit of risk. ATRESMEDIA is currently generating about 0.07 per unit of volatility. If you would invest 273.00 in ATRESMEDIA on October 4, 2024 and sell it today you would earn a total of 154.00 from holding ATRESMEDIA or generate 56.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Aurubis AG vs. ATRESMEDIA
Performance |
Timeline |
Aurubis AG |
ATRESMEDIA |
Aurubis AG and ATRESMEDIA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aurubis AG and ATRESMEDIA
The main advantage of trading using opposite Aurubis AG and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis AG position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA's long position.Aurubis AG vs. T MOBILE US | Aurubis AG vs. Heidelberg Materials AG | Aurubis AG vs. Zijin Mining Group | Aurubis AG vs. Consolidated Communications Holdings |
Check out your portfolio center.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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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