Correlation Between Grand Plastic and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Grand Plastic and Amtran Technology 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 Grand Plastic and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Plastic Technology and Amtran Technology Co, you can compare the effects of market volatilities on Grand Plastic and Amtran Technology 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 Grand Plastic with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Plastic and Amtran Technology.
Diversification Opportunities for Grand Plastic and Amtran Technology
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grand and Amtran is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Grand Plastic Technology and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and Grand Plastic 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 Grand Plastic Technology are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Grand Plastic i.e., Grand Plastic and Amtran Technology go up and down completely randomly.
Pair Corralation between Grand Plastic and Amtran Technology
Assuming the 90 days trading horizon Grand Plastic Technology is expected to generate 1.41 times more return on investment than Amtran Technology. However, Grand Plastic is 1.41 times more volatile than Amtran Technology Co. It trades about -0.04 of its potential returns per unit of risk. Amtran Technology Co is currently generating about -0.18 per unit of risk. If you would invest 169,500 in Grand Plastic Technology on September 2, 2024 and sell it today you would lose (5,000) from holding Grand Plastic Technology or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Plastic Technology vs. Amtran Technology Co
Performance |
| Timeline |
| Grand Plastic Technology |
| Amtran Technology |
Grand Plastic and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Plastic and Amtran Technology
The main advantage of trading using opposite Grand Plastic and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Plastic position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| Grand Plastic vs. WinMate Communication INC | Grand Plastic vs. STARLUX Airlines Co | Grand Plastic vs. U Media Communications | Grand Plastic vs. X Legend Entertainment Co |
| Amtran Technology vs. Chaintech Technology Corp | Amtran Technology vs. Avision | Amtran Technology vs. Clevo Co | Amtran Technology vs. Elitegroup Computer Systems |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |