Correlation Between Amtran Technology and Jean
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and Jean 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 Amtran Technology and Jean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtran Technology Co and Jean Co, you can compare the effects of market volatilities on Amtran Technology and Jean 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 Amtran Technology with a short position of Jean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and Jean.
Diversification Opportunities for Amtran Technology and Jean
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amtran and Jean is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and Jean Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jean and Amtran Technology 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 Amtran Technology Co are associated (or correlated) with Jean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jean has no effect on the direction of Amtran Technology i.e., Amtran Technology and Jean go up and down completely randomly.
Pair Corralation between Amtran Technology and Jean
Assuming the 90 days trading horizon Amtran Technology Co is expected to generate 1.03 times more return on investment than Jean. However, Amtran Technology is 1.03 times more volatile than Jean Co. It trades about 0.07 of its potential returns per unit of risk. Jean Co is currently generating about 0.03 per unit of risk. If you would invest 1,285 in Amtran Technology Co on September 4, 2024 and sell it today you would earn a total of 685.00 from holding Amtran Technology Co or generate 53.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. Jean Co
Performance |
| Timeline |
| Amtran Technology |
| Jean |
Amtran Technology and Jean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and Jean
The main advantage of trading using opposite Amtran Technology and Jean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, Jean 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 Jean will offset losses from the drop in Jean's long position.| Amtran Technology vs. Tainan Spinning Co | Amtran Technology vs. Chia Her Industrial | Amtran Technology vs. WiseChip Semiconductor | Amtran Technology vs. Novatek Microelectronics Corp |
| Jean vs. Shuttle | Jean vs. Amtran Technology Co | Jean vs. AVerMedia Technologies | Jean vs. Gigastorage Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |