Correlation Between AMBRA SA and VIRGIN WINES

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

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

Diversification Opportunities for AMBRA SA and VIRGIN WINES

0.0

Correlation Coefficient

AMBRA SA  VIRGIN WINES

Pay attention - limited upside

The 3 months correlation between AMBRA and VIRGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMBRA SA A and VIRGIN WINES UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRGIN WINES UK and AMBRA 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 AMBRA SA A are associated (or correlated) with VIRGIN WINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRGIN WINES UK has no effect on the direction of AMBRA SA i.e., AMBRA SA and VIRGIN WINES go up and down completely randomly.

Pair Corralation between AMBRA SA and VIRGIN WINES

If you would invest  446.00  in AMBRA SA A on September 26, 2024 and sell it today you would earn a total of  54.00  from holding AMBRA SA A or generate 12.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

AMBRA SA A  vs.  VIRGIN WINES UK

AMBRA SA A

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AMBRA SA A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AMBRA SA reported solid returns over the last few months and may actually be approaching a breakup point.

VIRGIN WINES UK

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with AMBRA SA and VIRGIN WINES

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

The idea behind AMBRA SA A and VIRGIN WINES UK 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.