Correlation Between Ampco Pittsburgh and Automatic Data
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Automatic Data 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 Ampco Pittsburgh and Automatic Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Automatic Data Processing, you can compare the effects of market volatilities on Ampco Pittsburgh and Automatic Data 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 Ampco Pittsburgh with a short position of Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Automatic Data.
Diversification Opportunities for Ampco Pittsburgh and Automatic Data
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ampco and Automatic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing and Ampco Pittsburgh 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 Ampco Pittsburgh are associated (or correlated) with Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Automatic Data go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Automatic Data
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to under-perform the Automatic Data. In addition to that, Ampco Pittsburgh is 6.22 times more volatile than Automatic Data Processing. It trades about 0.0 of its total potential returns per unit of risk. Automatic Data Processing is currently generating about 0.14 per unit of volatility. If you would invest 22,387 in Automatic Data Processing on August 24, 2024 and sell it today you would earn a total of 8,172 from holding Automatic Data Processing or generate 36.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Automatic Data Processing
Performance |
| Timeline |
| Ampco Pittsburgh |
| Automatic Data Processing |
Ampco Pittsburgh and Automatic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Automatic Data
The main advantage of trading using opposite Ampco Pittsburgh and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Automatic Data 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 Automatic Data will offset losses from the drop in Automatic Data's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
| Automatic Data vs. Robert Half International | Automatic Data vs. Barrett Business Services | Automatic Data vs. ManpowerGroup | Automatic Data vs. Kforce 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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