Correlation Between Ams AG and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Ams AG and US Bancorp 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 Ams AG and US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ams AG and US Bancorp PERP, you can compare the effects of market volatilities on Ams AG and US Bancorp 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 Ams AG with a short position of US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ams AG and US Bancorp.
Diversification Opportunities for Ams AG and US Bancorp
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ams and USB-PA is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding ams AG and US Bancorp PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp PERP and Ams 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 ams AG are associated (or correlated) with US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp PERP has no effect on the direction of Ams AG i.e., Ams AG and US Bancorp go up and down completely randomly.
Pair Corralation between Ams AG and US Bancorp
Assuming the 90 days horizon ams AG is expected to under-perform the US Bancorp. In addition to that, Ams AG is 4.54 times more volatile than US Bancorp PERP. It trades about -0.26 of its total potential returns per unit of risk. US Bancorp PERP is currently generating about 0.06 per unit of volatility. If you would invest 85,502 in US Bancorp PERP on January 24, 2024 and sell it today you would earn a total of 2,498 from holding US Bancorp PERP or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ams AG vs. US Bancorp PERP
Performance |
| Timeline |
| ams AG |
| US Bancorp PERP |
Ams AG and US Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ams AG and US Bancorp
The main advantage of trading using opposite Ams AG and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ams AG position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.| Ams AG vs. Advanced Micro Devices | Ams AG vs. Intel | Ams AG vs. Taiwan Semiconductor Manufacturing | Ams AG vs. Marvell Technology Group |
| US Bancorp vs. KeyCorp | US Bancorp vs. Regions Financial | US Bancorp vs. US Bancorp | US Bancorp vs. KeyCorp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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