Correlation Between AmTrust Financial and PICC Property
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and PICC Property 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 AmTrust Financial and PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmTrust Financial Services and PICC Property and, you can compare the effects of market volatilities on AmTrust Financial and PICC Property 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 AmTrust Financial with a short position of PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and PICC Property.
Diversification Opportunities for AmTrust Financial and PICC Property
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AmTrust and PICC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property and AmTrust Financial 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 AmTrust Financial Services are associated (or correlated) with PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and PICC Property go up and down completely randomly.
Pair Corralation between AmTrust Financial and PICC Property
Assuming the 90 days horizon AmTrust Financial is expected to generate 2.41 times less return on investment than PICC Property. In addition to that, AmTrust Financial is 1.21 times more volatile than PICC Property and. It trades about 0.02 of its total potential returns per unit of risk. PICC Property and is currently generating about 0.07 per unit of volatility. If you would invest 2,075 in PICC Property and on September 3, 2024 and sell it today you would earn a total of 1,787 from holding PICC Property and or generate 86.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmTrust Financial Services vs. PICC Property and
Performance |
| Timeline |
| AmTrust Financial |
| PICC Property |
AmTrust Financial and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and PICC Property
The main advantage of trading using opposite AmTrust Financial and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.| AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services |
| PICC Property vs. Anhui Conch Cement | PICC Property vs. China Overseas Land | PICC Property vs. China Shenhua Energy | PICC Property vs. ENN Energy 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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