Correlation Between AMAG Austria and Horseshoe Metals
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and Horseshoe Metals 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 AMAG Austria and Horseshoe Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG Austria Metall and Horseshoe Metals Limited, you can compare the effects of market volatilities on AMAG Austria and Horseshoe Metals 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 AMAG Austria with a short position of Horseshoe Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and Horseshoe Metals.
Diversification Opportunities for AMAG Austria and Horseshoe Metals
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMAG and Horseshoe is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and Horseshoe Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horseshoe Metals and AMAG Austria 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 AMAG Austria Metall are associated (or correlated) with Horseshoe Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horseshoe Metals has no effect on the direction of AMAG Austria i.e., AMAG Austria and Horseshoe Metals go up and down completely randomly.
Pair Corralation between AMAG Austria and Horseshoe Metals
Assuming the 90 days trading horizon AMAG Austria is expected to generate 124.18 times less return on investment than Horseshoe Metals. But when comparing it to its historical volatility, AMAG Austria Metall is 11.79 times less risky than Horseshoe Metals. It trades about 0.01 of its potential returns per unit of risk. Horseshoe Metals Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.25 in Horseshoe Metals Limited on September 3, 2025 and sell it today you would earn a total of 0.95 from holding Horseshoe Metals Limited or generate 380.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG Austria Metall vs. Horseshoe Metals Limited
Performance |
| Timeline |
| AMAG Austria Metall |
| Horseshoe Metals |
AMAG Austria and Horseshoe Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG Austria and Horseshoe Metals
The main advantage of trading using opposite AMAG Austria and Horseshoe Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, Horseshoe Metals 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 Horseshoe Metals will offset losses from the drop in Horseshoe Metals' long position.| AMAG Austria vs. Erste Group Bank | AMAG Austria vs. QIIWI GAMES AB | AMAG Austria vs. United Insurance Holdings | AMAG Austria vs. AOZORA BANK LTD |
| Horseshoe Metals vs. Apple Inc | Horseshoe Metals vs. Apple Inc | Horseshoe Metals vs. Apple Inc | Horseshoe Metals vs. Apple Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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