Correlation Between AMCOL INTERNATIONAL and Stingray
Can any of the company-specific risk be diversified away by investing in both AMCOL INTERNATIONAL and Stingray 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 AMCOL INTERNATIONAL and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCOL INTERNATIONAL and Stingray Group, you can compare the effects of market volatilities on AMCOL INTERNATIONAL and Stingray 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 AMCOL INTERNATIONAL with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCOL INTERNATIONAL and Stingray.
Diversification Opportunities for AMCOL INTERNATIONAL and Stingray
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMCOL and Stingray is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AMCOL INTERNATIONAL and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and AMCOL INTERNATIONAL 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 AMCOL INTERNATIONAL are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of AMCOL INTERNATIONAL i.e., AMCOL INTERNATIONAL and Stingray go up and down completely randomly.
Pair Corralation between AMCOL INTERNATIONAL and Stingray
Considering the 90-day investment horizon AMCOL INTERNATIONAL is expected to under-perform the Stingray. In addition to that, AMCOL INTERNATIONAL is 3.14 times more volatile than Stingray Group. It trades about -0.06 of its total potential returns per unit of risk. Stingray Group is currently generating about 0.05 per unit of volatility. If you would invest 320.00 in Stingray Group on August 23, 2024 and sell it today you would earn a total of 225.00 from holding Stingray Group or generate 70.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.46% |
| Values | Daily Returns |
AMCOL INTERNATIONAL vs. Stingray Group
Performance |
| Timeline |
| AMCOL INTERNATIONAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stingray Group |
AMCOL INTERNATIONAL and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCOL INTERNATIONAL and Stingray
The main advantage of trading using opposite AMCOL INTERNATIONAL and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCOL INTERNATIONAL position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| AMCOL INTERNATIONAL vs. China Liberal Education | AMCOL INTERNATIONAL vs. Lixiang Education Holding | AMCOL INTERNATIONAL vs. Four Seasons Education | AMCOL INTERNATIONAL vs. Jianzhi Education Technology |
| Stingray vs. Shimano Inc ADR | Stingray vs. Yamaha Corp DRC | Stingray vs. Vista Outdoor | Stingray vs. Hasbro Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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