Correlation Between Rosslyn Data and Ams AG

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

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

Diversification Opportunities for Rosslyn Data and Ams AG

0.49

Correlation Coefficient

Rosslyn Data  Ams AG

Very weak diversification

The 3 months correlation between Rosslyn and Ams is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Rosslyn Data Technologies and Ams AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ams AG and Rosslyn Data 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 Rosslyn Data Technologies are associated (or correlated) with Ams AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ams AG has no effect on the direction of Rosslyn Data i.e., Rosslyn Data and Ams AG go up and down completely randomly.

Pair Corralation between Rosslyn Data and Ams AG

Assuming the 90 days trading horizon Rosslyn Data Technologies is expected to generate 0.57 times more return on investment than Ams AG. However, Rosslyn Data Technologies is 1.77 times less risky than Ams AG. It trades about 0.03 of its potential returns per unit of risk. Ams AG is currently generating about -0.13 per unit of risk. If you would invest  475.00  in Rosslyn Data Technologies on October 25, 2024 and sell it today you would earn a total of  10.00  from holding Rosslyn Data Technologies or generate 2.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Rosslyn Data Technologies  vs.  Ams AG

Rosslyn Data Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rosslyn Data Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Rosslyn Data is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ams AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ams AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Rosslyn Data and Ams AG

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

The idea behind Rosslyn Data Technologies and Ams AG 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.