Correlation Between American Medical and Volkswagen
Can any of the company-specific risk be diversified away by investing in both American Medical and Volkswagen 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 American Medical and Volkswagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Medical Technologies and Volkswagen AG, you can compare the effects of market volatilities on American Medical and Volkswagen 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 American Medical with a short position of Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Medical and Volkswagen.
Diversification Opportunities for American Medical and Volkswagen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Volkswagen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Medical Technologies and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG and American Medical 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 American Medical Technologies are associated (or correlated) with Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of American Medical i.e., American Medical and Volkswagen go up and down completely randomly.
Pair Corralation between American Medical and Volkswagen
If you would invest 12,130 in Volkswagen AG on September 8, 2025 and sell it today you would earn a total of 103.00 from holding Volkswagen AG or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Medical Technologies vs. Volkswagen AG
Performance |
| Timeline |
| American Medical Tec |
| Volkswagen AG |
American Medical and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Medical and Volkswagen
The main advantage of trading using opposite American Medical and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Medical position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| American Medical vs. Nascent Wine | American Medical vs. Infrastrutture Wireless Italiane | American Medical vs. 24SevenOffice Group AB | American Medical vs. Golden Energy Offshore |
| Volkswagen vs. Yuexiu Transport Infrastructure | Volkswagen vs. Catalyst Metals Limited | Volkswagen vs. Storage Computer | Volkswagen vs. C3 Metals |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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