Correlation Between Azimut Holding and AURELIUS Equity

Can any of the company-specific risk be diversified away by investing in both Azimut Holding and AURELIUS Equity 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 Azimut Holding and AURELIUS Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Azimut Holding SpA and AURELIUS Equity Opportunities, you can compare the effects of market volatilities on Azimut Holding and AURELIUS Equity 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 Azimut Holding with a short position of AURELIUS Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azimut Holding and AURELIUS Equity.

Diversification Opportunities for Azimut Holding and AURELIUS Equity

0.0

Correlation Coefficient

Azimut Holding  AURELIUS Equity

Pay attention - limited upside

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

Pair Corralation between Azimut Holding and AURELIUS Equity

If you would invest (100.00) in AURELIUS Equity Opportunities on September 12, 2024 and sell it today you would earn a total of  100.00  from holding AURELIUS Equity Opportunities or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Azimut Holding SpA  vs.  AURELIUS Equity Opportunities

Azimut Holding SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azimut Holding SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Azimut Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

AURELIUS Equity Oppo

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Azimut Holding and AURELIUS Equity

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

The idea behind Azimut Holding SpA and AURELIUS Equity Opportunities 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.