Correlation Between AmTrust Financial and AmTrust Financial
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and AmTrust Financial 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 AmTrust Financial 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 AmTrust Financial Services, you can compare the effects of market volatilities on AmTrust Financial and AmTrust Financial 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 AmTrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and AmTrust Financial.
Diversification Opportunities for AmTrust Financial and AmTrust Financial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AmTrust and AmTrust is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and AmTrust Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmTrust Financial 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 AmTrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmTrust Financial has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and AmTrust Financial go up and down completely randomly.
Pair Corralation between AmTrust Financial and AmTrust Financial
Assuming the 90 days horizon AmTrust Financial Services is expected to generate 1.04 times more return on investment than AmTrust Financial. However, AmTrust Financial is 1.04 times more volatile than AmTrust Financial Services. It trades about 0.19 of its potential returns per unit of risk. AmTrust Financial Services is currently generating about 0.03 per unit of risk. If you would invest 1,430 in AmTrust Financial Services on August 29, 2024 and sell it today you would earn a total of 80.00 from holding AmTrust Financial Services or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmTrust Financial Services vs. AmTrust Financial Services
Performance |
| Timeline |
| AmTrust Financial |
| AmTrust Financial |
AmTrust Financial and AmTrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and AmTrust Financial
The main advantage of trading using opposite AmTrust Financial and AmTrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, AmTrust Financial 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 AmTrust Financial will offset losses from the drop in AmTrust Financial's long position.| AmTrust Financial vs. Progressive Corp | AmTrust Financial vs. White Mountains Insurance | AmTrust Financial vs. Chubb | AmTrust Financial vs. W R Berkley |
| AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. Aspen Insurance 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |