Correlation Between Amadeus IT and Tyson Foods

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

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

Diversification Opportunities for Amadeus IT and Tyson Foods

-0.24

Correlation Coefficient

Amadeus IT  Tyson Foods

Very good diversification

The 3 months correlation between Amadeus and Tyson is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Group and Tyson Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods and Amadeus IT 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 Amadeus IT Group are associated (or correlated) with Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods has no effect on the direction of Amadeus IT i.e., Amadeus IT and Tyson Foods go up and down completely randomly.

Pair Corralation between Amadeus IT and Tyson Foods

Assuming the 90 days trading horizon Amadeus IT Group is expected to generate 0.92 times more return on investment than Tyson Foods. However, Amadeus IT Group is 1.09 times less risky than Tyson Foods. It trades about 0.05 of its potential returns per unit of risk. Tyson Foods is currently generating about -0.16 per unit of risk. If you would invest  6,852  in Amadeus IT Group on April 25, 2025 and sell it today you would earn a total of  276.00  from holding Amadeus IT Group or generate 4.03% return on investment over 90 days.

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

Amadeus IT Group  vs.  Tyson Foods

Amadeus IT Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amadeus IT Group are ranked lower than 4 (%) 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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Tyson Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tyson Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Amadeus IT and Tyson Foods

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

The idea behind Amadeus IT Group and Tyson Foods 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.