Correlation Between OneApex and AMADEUS IT

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

By analyzing existing cross correlation between OneApex Limited and AMADEUS IT GRP, you can compare the effects of market volatilities on OneApex and AMADEUS IT 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 OneApex with a short position of AMADEUS IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneApex and AMADEUS IT.

Diversification Opportunities for OneApex and AMADEUS IT

-0.33

Correlation Coefficient

OneApex  AMADEUS IT

Very good diversification

The 3 months correlation between OneApex and AMADEUS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding OneApex Limited and AMADEUS IT GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMADEUS IT GRP and OneApex 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 OneApex Limited are associated (or correlated) with AMADEUS IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMADEUS IT GRP has no effect on the direction of OneApex i.e., OneApex and AMADEUS IT go up and down completely randomly.

Pair Corralation between OneApex and AMADEUS IT

Assuming the 90 days horizon OneApex Limited is expected to generate 5.45 times more return on investment than AMADEUS IT. However, OneApex is 5.45 times more volatile than AMADEUS IT GRP. It trades about 0.02 of its potential returns per unit of risk. AMADEUS IT GRP is currently generating about 0.02 per unit of risk. If you would invest  7.55  in OneApex Limited on September 23, 2024 and sell it today you would lose (0.30) from holding OneApex Limited or give up 3.97% of portfolio value over 90 days.

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

OneApex Limited  vs.  AMADEUS IT GRP

OneApex Limited

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OneApex Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OneApex may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AMADEUS IT GRP

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMADEUS IT GRP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AMADEUS IT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with OneApex and AMADEUS IT

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

The idea behind OneApex Limited and AMADEUS IT GRP 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.