Correlation Between AMPACS Corp and Giant Manufacturing
Can any of the company-specific risk be diversified away by investing in both AMPACS Corp and Giant Manufacturing 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 AMPACS Corp and Giant Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPACS Corp and Giant Manufacturing Co, you can compare the effects of market volatilities on AMPACS Corp and Giant Manufacturing 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 AMPACS Corp with a short position of Giant Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPACS Corp and Giant Manufacturing.
Diversification Opportunities for AMPACS Corp and Giant Manufacturing
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AMPACS and Giant is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding AMPACS Corp and Giant Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giant Manufacturing and AMPACS Corp 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 AMPACS Corp are associated (or correlated) with Giant Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giant Manufacturing has no effect on the direction of AMPACS Corp i.e., AMPACS Corp and Giant Manufacturing go up and down completely randomly.
Pair Corralation between AMPACS Corp and Giant Manufacturing
Assuming the 90 days trading horizon AMPACS Corp is expected to under-perform the Giant Manufacturing. In addition to that, AMPACS Corp is 1.46 times more volatile than Giant Manufacturing Co. It trades about -0.28 of its total potential returns per unit of risk. Giant Manufacturing Co is currently generating about -0.2 per unit of volatility. If you would invest 15,900 in Giant Manufacturing Co on September 13, 2024 and sell it today you would lose (1,300) from holding Giant Manufacturing Co or give up 8.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMPACS Corp vs. Giant Manufacturing Co
Performance |
| Timeline |
| AMPACS Corp |
| Giant Manufacturing |
AMPACS Corp and Giant Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPACS Corp and Giant Manufacturing
The main advantage of trading using opposite AMPACS Corp and Giant Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPACS Corp position performs unexpectedly, Giant Manufacturing 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 Giant Manufacturing will offset losses from the drop in Giant Manufacturing's long position.| AMPACS Corp vs. Auden Techno | AMPACS Corp vs. VIA Labs | AMPACS Corp vs. Orient Semiconductor Electronics | AMPACS Corp vs. AP Memory Technology |
| Giant Manufacturing vs. Feng Tay Enterprises | Giant Manufacturing vs. Ruentex Development Co | Giant Manufacturing vs. WiseChip Semiconductor | Giant Manufacturing vs. Novatek Microelectronics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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