Correlation Between AT S and Wolford Aktiengesellscha

Can any of the company-specific risk be diversified away by investing in both AT S and Wolford Aktiengesellscha 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 AT S and Wolford Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AT S Austria and Wolford Aktiengesellschaft, you can compare the effects of market volatilities on AT S and Wolford Aktiengesellscha 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 AT S with a short position of Wolford Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Wolford Aktiengesellscha.

Diversification Opportunities for AT S and Wolford Aktiengesellscha

-0.02

Correlation Coefficient

AT S  Wolford Aktiengesellscha

Good diversification

The 3 months correlation between ATS and Wolford is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and Wolford Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wolford Aktiengesellscha and AT S 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 AT S Austria are associated (or correlated) with Wolford Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wolford Aktiengesellscha has no effect on the direction of AT S i.e., AT S and Wolford Aktiengesellscha go up and down completely randomly.

Pair Corralation between AT S and Wolford Aktiengesellscha

Assuming the 90 days trading horizon AT S Austria is expected to under-perform the Wolford Aktiengesellscha. But the stock apears to be less risky and, when comparing its historical volatility, AT S Austria is 1.22 times less risky than Wolford Aktiengesellscha. The stock trades about -0.05 of its potential returns per unit of risk. The Wolford Aktiengesellschaft is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  540.00  in Wolford Aktiengesellschaft on September 14, 2024 and sell it today you would lose (92.00) from holding Wolford Aktiengesellschaft or give up 17.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AT S Austria  vs.  Wolford Aktiengesellschaft

AT S Austria

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AT S Austria has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Wolford Aktiengesellscha

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wolford Aktiengesellschaft are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent essential indicators, Wolford Aktiengesellscha demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AT S and Wolford Aktiengesellscha

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

The idea behind AT S Austria and Wolford Aktiengesellschaft 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.