Correlation Between Ampco Pittsburgh and Cimpress
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Cimpress 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 Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Cimpress NV, you can compare the effects of market volatilities on Ampco Pittsburgh and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Cimpress.
Diversification Opportunities for Ampco Pittsburgh and Cimpress
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ampco and Cimpress is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Cimpress go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Cimpress
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 1.51 times more return on investment than Cimpress. However, Ampco Pittsburgh is 1.51 times more volatile than Cimpress NV. It trades about -0.03 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.32 per unit of risk. If you would invest 229.00 in Ampco Pittsburgh on November 8, 2024 and sell it today you would lose (10.00) from holding Ampco Pittsburgh or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Cimpress NV
Performance |
| Timeline |
| Ampco Pittsburgh |
| Cimpress NV |
Ampco Pittsburgh and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Cimpress
The main advantage of trading using opposite Ampco Pittsburgh and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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