Correlation Between Amtran Technology and United Radiant
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and United Radiant 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 United Radiant 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 United Radiant Technology, you can compare the effects of market volatilities on Amtran Technology and United Radiant 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 United Radiant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and United Radiant.
Diversification Opportunities for Amtran Technology and United Radiant
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtran and United is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and United Radiant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Radiant Technology 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 United Radiant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Radiant Technology has no effect on the direction of Amtran Technology i.e., Amtran Technology and United Radiant go up and down completely randomly.
Pair Corralation between Amtran Technology and United Radiant
Assuming the 90 days trading horizon Amtran Technology Co is expected to generate 1.76 times more return on investment than United Radiant. However, Amtran Technology is 1.76 times more volatile than United Radiant Technology. It trades about 0.07 of its potential returns per unit of risk. United Radiant Technology is currently generating about 0.05 per unit of risk. If you would invest 1,015 in Amtran Technology Co on August 27, 2024 and sell it today you would earn a total of 985.00 from holding Amtran Technology Co or generate 97.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. United Radiant Technology
Performance |
| Timeline |
| Amtran Technology |
| United Radiant Technology |
Amtran Technology and United Radiant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and United Radiant
The main advantage of trading using opposite Amtran Technology and United Radiant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, United Radiant 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 United Radiant will offset losses from the drop in United Radiant's long position.| Amtran Technology vs. United Radiant Technology | Amtran Technology vs. V Tac Technology Co | Amtran Technology vs. Arbor Technology | Amtran Technology vs. Voltronic Power Technology |
| United Radiant vs. Advantech Co | United Radiant vs. IEI Integration Corp | United Radiant vs. Flytech Technology Co | United Radiant vs. ADLINK Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |