Correlation Between Ampco Pittsburgh and Diana Shipping
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Diana Shipping 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 Diana Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Diana Shipping, you can compare the effects of market volatilities on Ampco Pittsburgh and Diana Shipping 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 Diana Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Diana Shipping.
Diversification Opportunities for Ampco Pittsburgh and Diana Shipping
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ampco and Diana is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Diana Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diana Shipping 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 Diana Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diana Shipping has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Diana Shipping go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Diana Shipping
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 1.8 times more return on investment than Diana Shipping. However, Ampco Pittsburgh is 1.8 times more volatile than Diana Shipping. It trades about 0.14 of its potential returns per unit of risk. Diana Shipping is currently generating about -0.1 per unit of risk. If you would invest 176.00 in Ampco Pittsburgh on November 1, 2024 and sell it today you would earn a total of 69.00 from holding Ampco Pittsburgh or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Diana Shipping
Performance |
| Timeline |
| Ampco Pittsburgh |
| Diana Shipping |
Ampco Pittsburgh and Diana Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Diana Shipping
The main advantage of trading using opposite Ampco Pittsburgh and Diana Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Diana Shipping 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 Diana Shipping will offset losses from the drop in Diana Shipping's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
| Diana Shipping vs. Star Bulk Carriers | Diana Shipping vs. Golden Ocean Group | Diana Shipping vs. Global Ship Lease | Diana Shipping vs. Genco Shipping Trading |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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