Correlation Between Amper SA and Indra A

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

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

Diversification Opportunities for Amper SA and Indra A

0.2

Correlation Coefficient

Amper SA  Indra A

Modest diversification

The 3 months correlation between Amper and Indra is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amper SA and Indra A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indra A and Amper 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 Amper SA are associated (or correlated) with Indra A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indra A has no effect on the direction of Amper SA i.e., Amper SA and Indra A go up and down completely randomly.

Pair Corralation between Amper SA and Indra A

Assuming the 90 days trading horizon Amper SA is expected to under-perform the Indra A. In addition to that, Amper SA is 2.87 times more volatile than Indra A. It trades about 0.0 of its total potential returns per unit of risk. Indra A is currently generating about 0.08 per unit of volatility. If you would invest  988.00  in Indra A on September 5, 2024 and sell it today you would earn a total of  690.00  from holding Indra A or generate 69.84% return on investment over 90 days.

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

Amper SA  vs.  Indra A

Amper SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Amper SA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Indra A

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with Amper SA and Indra A

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

The idea behind Amper SA and Indra A 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..