Correlation Between American Public and MOBILE FACTORY
Can any of the company-specific risk be diversified away by investing in both American Public and MOBILE FACTORY 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 American Public and MOBILE FACTORY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Public Education and MOBILE FACTORY INC, you can compare the effects of market volatilities on American Public and MOBILE FACTORY 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 American Public with a short position of MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Public and MOBILE FACTORY.
Diversification Opportunities for American Public and MOBILE FACTORY
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and MOBILE is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding American Public Education and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC and American Public 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 American Public Education are associated (or correlated) with MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of American Public i.e., American Public and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between American Public and MOBILE FACTORY
Assuming the 90 days horizon American Public is expected to generate 1.36 times less return on investment than MOBILE FACTORY. In addition to that, American Public is 1.39 times more volatile than MOBILE FACTORY INC. It trades about 0.07 of its total potential returns per unit of risk. MOBILE FACTORY INC is currently generating about 0.13 per unit of volatility. If you would invest 570.00 in MOBILE FACTORY INC on November 5, 2024 and sell it today you would earn a total of 25.00 from holding MOBILE FACTORY INC or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Public Education vs. MOBILE FACTORY INC
Performance |
| Timeline |
| American Public Education |
| MOBILE FACTORY INC |
American Public and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Public and MOBILE FACTORY
The main advantage of trading using opposite American Public and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Public position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| American Public vs. Laureate Education | American Public vs. DeVry Education Group | American Public vs. Xinhua Winshare Publishing | American Public vs. EEDUCATION ALBERT AB |
| MOBILE FACTORY vs. Playa Hotels Resorts | MOBILE FACTORY vs. Hyatt Hotels | MOBILE FACTORY vs. Sun Life Financial | MOBILE FACTORY vs. BANKINTER ADR 2007 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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