Correlation Between AmTrust Financial and Space Communication
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and Space Communication 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 Space Communication 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 Space Communication, you can compare the effects of market volatilities on AmTrust Financial and Space Communication 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 Space Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and Space Communication.
Diversification Opportunities for AmTrust Financial and Space Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AmTrust and Space is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and Space Communication go up and down completely randomly.
Pair Corralation between AmTrust Financial and Space Communication
If you would invest 1,435 in AmTrust Financial Services on August 28, 2024 and sell it today you would earn a total of 64.00 from holding AmTrust Financial Services or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmTrust Financial Services vs. Space Communication
Performance |
| Timeline |
| AmTrust Financial |
| Space Communication |
AmTrust Financial and Space Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and Space Communication
The main advantage of trading using opposite AmTrust Financial and Space Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, Space Communication 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 Space Communication will offset losses from the drop in Space Communication's long position.| AmTrust Financial vs. Progressive Corp | AmTrust Financial vs. White Mountains Insurance | AmTrust Financial vs. Chubb | AmTrust Financial vs. W R Berkley |
| Space Communication vs. Barings BDC | Space Communication vs. Encore Capital Group | Space Communication vs. Juniata Valley Financial | Space Communication vs. AmTrust Financial Services |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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