Correlation Between Aurubis AG and Devolver Digital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aurubis AG and Devolver Digital 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 Aurubis AG and Devolver Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurubis AG and Devolver Digital, you can compare the effects of market volatilities on Aurubis AG and Devolver Digital 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 Aurubis AG with a short position of Devolver Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis AG and Devolver Digital.

Diversification Opportunities for Aurubis AG and Devolver Digital

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Aurubis and Devolver is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis AG and Devolver Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Devolver Digital and Aurubis AG 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 Aurubis AG are associated (or correlated) with Devolver Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Devolver Digital has no effect on the direction of Aurubis AG i.e., Aurubis AG and Devolver Digital go up and down completely randomly.

Pair Corralation between Aurubis AG and Devolver Digital

Assuming the 90 days trading horizon Aurubis AG is expected to generate 1.5 times more return on investment than Devolver Digital. However, Aurubis AG is 1.5 times more volatile than Devolver Digital. It trades about 0.22 of its potential returns per unit of risk. Devolver Digital is currently generating about 0.25 per unit of risk. If you would invest  7,590  in Aurubis AG on April 23, 2025 and sell it today you would earn a total of  1,840  from holding Aurubis AG or generate 24.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Aurubis AG  vs.  Devolver Digital

 Performance 
       Timeline  
Aurubis AG 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aurubis AG are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Aurubis AG unveiled solid returns over the last few months and may actually be approaching a breakup point.
Devolver Digital 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Devolver Digital are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Devolver Digital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Aurubis AG and Devolver Digital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aurubis AG and Devolver Digital

The main advantage of trading using opposite Aurubis AG and Devolver Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis AG position performs unexpectedly, Devolver Digital 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 Devolver Digital will offset losses from the drop in Devolver Digital's long position.
The idea behind Aurubis AG and Devolver Digital 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.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
CEOs Directory
Screen CEOs from public companies around the world
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like