Correlation Between ACG Metals and Atlantic American
Can any of the company-specific risk be diversified away by investing in both ACG Metals and Atlantic American 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 ACG Metals and Atlantic American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Metals Limited and Atlantic American, you can compare the effects of market volatilities on ACG Metals and Atlantic American 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 ACG Metals with a short position of Atlantic American. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Metals and Atlantic American.
Diversification Opportunities for ACG Metals and Atlantic American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACG and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACG Metals Limited and Atlantic American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic American and ACG Metals 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 ACG Metals Limited are associated (or correlated) with Atlantic American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic American has no effect on the direction of ACG Metals i.e., ACG Metals and Atlantic American go up and down completely randomly.
Pair Corralation between ACG Metals and Atlantic American
If you would invest 1,650 in ACG Metals Limited on August 28, 2024 and sell it today you would earn a total of 0.00 from holding ACG Metals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Metals Limited vs. Atlantic American
Performance |
| Timeline |
| ACG Metals Limited |
| Atlantic American |
ACG Metals and Atlantic American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Metals and Atlantic American
The main advantage of trading using opposite ACG Metals and Atlantic American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Metals position performs unexpectedly, Atlantic American 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 Atlantic American will offset losses from the drop in Atlantic American's long position.| ACG Metals vs. BioNTech SE | ACG Metals vs. Turning Point Brands | ACG Metals vs. Keurig Dr Pepper | ACG Metals vs. Constellation Brands Class |
| Atlantic American vs. CNO Financial Group | Atlantic American vs. MetLife Preferred Stock | Atlantic American vs. FG Annuities Life | Atlantic American vs. Prudential Public Limited |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |