Correlation Between P Duke and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both P Duke 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 P Duke and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between P Duke Technology Co and Amtran Technology Co, you can compare the effects of market volatilities on P Duke 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 P Duke with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of P Duke and Amtran Technology.
Diversification Opportunities for P Duke and Amtran Technology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 8109 and Amtran is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding P Duke Technology Co and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and P Duke 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 P Duke Technology Co 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 P Duke i.e., P Duke and Amtran Technology go up and down completely randomly.
Pair Corralation between P Duke and Amtran Technology
Assuming the 90 days trading horizon P Duke Technology Co is expected to generate 0.22 times more return on investment than Amtran Technology. However, P Duke Technology Co is 4.46 times less risky than Amtran Technology. It trades about -0.06 of its potential returns per unit of risk. Amtran Technology Co is currently generating about -0.19 per unit of risk. If you would invest 8,750 in P Duke Technology Co on August 29, 2024 and sell it today you would lose (50.00) from holding P Duke Technology Co or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
P Duke Technology Co vs. Amtran Technology Co
Performance |
| Timeline |
| P Duke Technology |
| Amtran Technology |
P Duke and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with P Duke and Amtran Technology
The main advantage of trading using opposite P Duke and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if P Duke 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.| P Duke vs. Sporton International | P Duke vs. Planet Technology | P Duke vs. Posiflex Technology | P Duke vs. ECOVE Environment Corp |
| Amtran Technology vs. Yulon Finance Corp | Amtran Technology vs. Taiwan Secom Co | Amtran Technology vs. Great Wall Enterprise |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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