Correlation Between Sopra Steria and Ams AG

Can any of the company-specific risk be diversified away by investing in both Sopra Steria and Ams AG 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 Sopra Steria and Ams AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sopra Steria Group and ams AG, you can compare the effects of market volatilities on Sopra Steria and Ams AG 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 Sopra Steria with a short position of Ams AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sopra Steria and Ams AG.

Diversification Opportunities for Sopra Steria and Ams AG

-0.39

Correlation Coefficient

Sopra Steria  Ams AG

Very good diversification

The 3 months correlation between Sopra and Ams is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sopra Steria Group and ams AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ams AG and Sopra Steria 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 Sopra Steria Group are associated (or correlated) with Ams AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ams AG has no effect on the direction of Sopra Steria i.e., Sopra Steria and Ams AG go up and down completely randomly.

Pair Corralation between Sopra Steria and Ams AG

Assuming the 90 days horizon Sopra Steria Group is expected to under-perform the Ams AG. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sopra Steria Group is 1.54 times less risky than Ams AG. The pink sheet trades about -0.13 of its potential returns per unit of risk. The ams AG is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  635.00  in ams AG on August 20, 2025 and sell it today you would lose (26.00) from holding ams AG or give up 4.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Sopra Steria Group  vs.  ams AG

Sopra Steria Group

Risk-Adjusted Performance

Weakest

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

ams AG

Risk-Adjusted Performance

Weakest

Over the last 90 days ams AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ams AG is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sopra Steria and Ams AG

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

The idea behind Sopra Steria Group and ams AG 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.