Correlation Between Amadeus IT and Dr Ing

Can any of the company-specific risk be diversified away by investing in both Amadeus IT and Dr Ing 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 Dr Ing 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 Dr Ing hc, you can compare the effects of market volatilities on Amadeus IT and Dr Ing 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 Dr Ing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amadeus IT and Dr Ing.

Diversification Opportunities for Amadeus IT and Dr Ing

-0.02

Correlation Coefficient

Amadeus IT  Dr Ing

Good diversification

The 3 months correlation between Amadeus and DRPRF is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Group and Dr Ing hc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Ing hc 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 Dr Ing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Ing hc has no effect on the direction of Amadeus IT i.e., Amadeus IT and Dr Ing go up and down completely randomly.

Pair Corralation between Amadeus IT and Dr Ing

Assuming the 90 days horizon Amadeus IT Group is expected to under-perform the Dr Ing. In addition to that, Amadeus IT is 1.04 times more volatile than Dr Ing hc. It trades about -0.07 of its total potential returns per unit of risk. Dr Ing hc is currently generating about -0.04 per unit of volatility. If you would invest  5,523  in Dr Ing hc on September 4, 2025 and sell it today you would lose (398.00) from holding Dr Ing hc or give up 7.21% of portfolio value over 90 days.

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

Amadeus IT Group  vs.  Dr Ing hc

Amadeus IT Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Amadeus IT Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Dr Ing hc

Risk-Adjusted Performance

Weakest

Over the last 90 days Dr Ing hc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dr Ing is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amadeus IT and Dr Ing

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

The idea behind Amadeus IT Group and Dr Ing hc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.