Correlation Between AMG Advanced and Nintendo
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Nintendo 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 AMG Advanced and Nintendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Nintendo Co, you can compare the effects of market volatilities on AMG Advanced and Nintendo 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 AMG Advanced with a short position of Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Nintendo.
Diversification Opportunities for AMG Advanced and Nintendo
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMG and Nintendo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of AMG Advanced i.e., AMG Advanced and Nintendo go up and down completely randomly.
Pair Corralation between AMG Advanced and Nintendo
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 0.97 times more return on investment than Nintendo. However, AMG Advanced Metallurgical is 1.03 times less risky than Nintendo. It trades about -0.02 of its potential returns per unit of risk. Nintendo Co is currently generating about -0.09 per unit of risk. If you would invest 2,842 in AMG Advanced Metallurgical on September 8, 2025 and sell it today you would lose (146.00) from holding AMG Advanced Metallurgical or give up 5.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 48.48% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Nintendo Co
Performance |
| Timeline |
| AMG Advanced Metallu |
| Nintendo |
Risk-Adjusted Performance
Weakest
Weak | Strong |
AMG Advanced and Nintendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Nintendo
The main advantage of trading using opposite AMG Advanced and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.| AMG Advanced vs. Pulsar Helium | AMG Advanced vs. Tungsten West PLC | AMG Advanced vs. Hardide PLC | AMG Advanced vs. Versarien PLC |
| Nintendo vs. Fevertree Drinks Plc | Nintendo vs. Southern Copper Corp | Nintendo vs. Tyson Foods Cl | Nintendo vs. Check Point Software |
Check out your portfolio center.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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