Correlation Between Ampco Pittsburgh and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and FTAI Infrastructure 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 FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and FTAI Infrastructure, you can compare the effects of market volatilities on Ampco Pittsburgh and FTAI Infrastructure 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 FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and FTAI Infrastructure.
Diversification Opportunities for Ampco Pittsburgh and FTAI Infrastructure
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ampco and FTAI is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure 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 FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and FTAI Infrastructure
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 1.04 times more return on investment than FTAI Infrastructure. However, Ampco Pittsburgh is 1.04 times more volatile than FTAI Infrastructure. It trades about 0.35 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about -0.01 per unit of risk. If you would invest 202.00 in Ampco Pittsburgh on October 25, 2024 and sell it today you would earn a total of 66.00 from holding Ampco Pittsburgh or generate 32.67% 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. FTAI Infrastructure
Performance |
| Timeline |
| Ampco Pittsburgh |
| FTAI Infrastructure |
Ampco Pittsburgh and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and FTAI Infrastructure
The main advantage of trading using opposite Ampco Pittsburgh and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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