Correlation Between Ampco Pittsburgh and Kirby
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Kirby 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 Kirby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Kirby, you can compare the effects of market volatilities on Ampco Pittsburgh and Kirby 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 Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Kirby.
Diversification Opportunities for Ampco Pittsburgh and Kirby
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ampco and Kirby is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby 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 Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Kirby go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Kirby
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to under-perform the Kirby. In addition to that, Ampco Pittsburgh is 2.23 times more volatile than Kirby. It trades about -0.01 of its total potential returns per unit of risk. Kirby is currently generating about 0.06 per unit of volatility. If you would invest 10,504 in Kirby on November 9, 2024 and sell it today you would earn a total of 211.00 from holding Kirby or generate 2.01% 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. Kirby
Performance |
| Timeline |
| Ampco Pittsburgh |
| Kirby |
Ampco Pittsburgh and Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Kirby
The main advantage of trading using opposite Ampco Pittsburgh and Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Kirby 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 Kirby will offset losses from the drop in Kirby's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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