Correlation Between Ambase Corp and Grand City
Can any of the company-specific risk be diversified away by investing in both Ambase Corp and Grand City 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 Ambase Corp and Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambase Corp and Grand City Properties, you can compare the effects of market volatilities on Ambase Corp and Grand City 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 Ambase Corp with a short position of Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambase Corp and Grand City.
Diversification Opportunities for Ambase Corp and Grand City
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambase and Grand is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ambase Corp and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties and Ambase 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 Ambase Corp are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Ambase Corp i.e., Ambase Corp and Grand City go up and down completely randomly.
Pair Corralation between Ambase Corp and Grand City
Given the investment horizon of 90 days Ambase Corp is expected to generate 2.87 times more return on investment than Grand City. However, Ambase Corp is 2.87 times more volatile than Grand City Properties. It trades about 0.07 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.01 per unit of risk. If you would invest 10.00 in Ambase Corp on October 13, 2024 and sell it today you would earn a total of 21.00 from holding Ambase Corp or generate 210.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambase Corp vs. Grand City Properties
Performance |
| Timeline |
| Ambase Corp |
| Grand City Properties |
Ambase Corp and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambase Corp and Grand City
The main advantage of trading using opposite Ambase Corp and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambase Corp position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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