Correlation Between AMAG Austria and FORWARD AIR
Can any of the company-specific risk be diversified away by investing in both AMAG Austria and FORWARD AIR 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 FORWARD AIR 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 FORWARD AIR P, you can compare the effects of market volatilities on AMAG Austria and FORWARD AIR 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 FORWARD AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG Austria and FORWARD AIR.
Diversification Opportunities for AMAG Austria and FORWARD AIR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMAG and FORWARD is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AMAG Austria Metall and FORWARD AIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORWARD AIR P 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 FORWARD AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORWARD AIR P has no effect on the direction of AMAG Austria i.e., AMAG Austria and FORWARD AIR go up and down completely randomly.
Pair Corralation between AMAG Austria and FORWARD AIR
Assuming the 90 days trading horizon AMAG Austria Metall is expected to under-perform the FORWARD AIR. But the stock apears to be less risky and, when comparing its historical volatility, AMAG Austria Metall is 2.74 times less risky than FORWARD AIR. The stock trades about -0.02 of its potential returns per unit of risk. The FORWARD AIR P is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,330 in FORWARD AIR P on April 23, 2025 and sell it today you would earn a total of 985.00 from holding FORWARD AIR P or generate 74.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AMAG Austria Metall vs. FORWARD AIR P
Performance |
Timeline |
AMAG Austria Metall |
FORWARD AIR P |
AMAG Austria and FORWARD AIR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMAG Austria and FORWARD AIR
The main advantage of trading using opposite AMAG Austria and FORWARD AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG Austria position performs unexpectedly, FORWARD AIR 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 FORWARD AIR will offset losses from the drop in FORWARD AIR's long position.AMAG Austria vs. Inspire Medical Systems | AMAG Austria vs. TITANIUM TRANSPORTGROUP | AMAG Austria vs. Diamyd Medical AB | AMAG Austria vs. NTG Nordic Transport |
FORWARD AIR vs. Regions Financial | FORWARD AIR vs. Cincinnati Financial Corp | FORWARD AIR vs. Odyssean Investment Trust | FORWARD AIR vs. Erste Group Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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