Correlation Between Antelope Enterprise and Armstrong Flooring
Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and Armstrong Flooring 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 Antelope Enterprise and Armstrong Flooring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antelope Enterprise Holdings and Armstrong Flooring, you can compare the effects of market volatilities on Antelope Enterprise and Armstrong Flooring 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 Antelope Enterprise with a short position of Armstrong Flooring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and Armstrong Flooring.
Diversification Opportunities for Antelope Enterprise and Armstrong Flooring
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Antelope and Armstrong is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and Armstrong Flooring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armstrong Flooring and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with Armstrong Flooring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armstrong Flooring has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and Armstrong Flooring go up and down completely randomly.
Pair Corralation between Antelope Enterprise and Armstrong Flooring
Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the Armstrong Flooring. But the stock apears to be less risky and, when comparing its historical volatility, Antelope Enterprise Holdings is 19.69 times less risky than Armstrong Flooring. The stock trades about -0.04 of its potential returns per unit of risk. The Armstrong Flooring is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Armstrong Flooring on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Armstrong Flooring or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.89% |
| Values | Daily Returns |
Antelope Enterprise Holdings vs. Armstrong Flooring
Performance |
| Timeline |
| Antelope Enterprise |
| Armstrong Flooring |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antelope Enterprise and Armstrong Flooring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antelope Enterprise and Armstrong Flooring
The main advantage of trading using opposite Antelope Enterprise and Armstrong Flooring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antelope Enterprise position performs unexpectedly, Armstrong Flooring 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 Armstrong Flooring will offset losses from the drop in Armstrong Flooring's long position.| Antelope Enterprise vs. Azek Company | Antelope Enterprise vs. AAON Inc | Antelope Enterprise vs. GMS Inc | Antelope Enterprise vs. Intelligent Living Application |
| Armstrong Flooring vs. Travis Perkins PLC | Armstrong Flooring vs. Armstrong World Industries | Armstrong Flooring vs. Apogee Enterprises | Armstrong Flooring vs. Quanex Building Products |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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