Correlation Between Ametek and Public Service
Can any of the company-specific risk be diversified away by investing in both Ametek and Public Service 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 Ametek and Public Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ametek Inc and Public Service Enterprise, you can compare the effects of market volatilities on Ametek and Public Service 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 Ametek with a short position of Public Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ametek and Public Service.
Diversification Opportunities for Ametek and Public Service
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ametek and Public is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Public Service Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service Enterprise and Ametek 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 Ametek Inc are associated (or correlated) with Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service Enterprise has no effect on the direction of Ametek i.e., Ametek and Public Service go up and down completely randomly.
Pair Corralation between Ametek and Public Service
Assuming the 90 days trading horizon Ametek Inc is expected to under-perform the Public Service. But the stock apears to be less risky and, when comparing its historical volatility, Ametek Inc is 1.31 times less risky than Public Service. The stock trades about -0.33 of its potential returns per unit of risk. The Public Service Enterprise is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 8,812 in Public Service Enterprise on October 10, 2024 and sell it today you would lose (282.00) from holding Public Service Enterprise or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Ametek Inc vs. Public Service Enterprise
Performance |
| Timeline |
| Ametek Inc |
| Public Service Enterprise |
Ametek and Public Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ametek and Public Service
The main advantage of trading using opposite Ametek and Public Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek position performs unexpectedly, Public Service 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 Public Service will offset losses from the drop in Public Service's long position.| Ametek vs. bet at home AG | Ametek vs. Aeorema Communications Plc | Ametek vs. Planet Fitness Cl | Ametek vs. Zoom Video Communications |
| Public Service vs. Tavistock Investments Plc | Public Service vs. Amedeo Air Four | Public Service vs. Sealed Air Corp | Public Service vs. New Residential 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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