Correlation Between Ampco Pittsburgh and Quad Graphics
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Quad Graphics 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 Quad Graphics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Quad Graphics, you can compare the effects of market volatilities on Ampco Pittsburgh and Quad Graphics 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 Quad Graphics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Quad Graphics.
Diversification Opportunities for Ampco Pittsburgh and Quad Graphics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ampco and Quad is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Quad Graphics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quad Graphics 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 Quad Graphics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quad Graphics has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Quad Graphics go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Quad Graphics
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 11.42 times less return on investment than Quad Graphics. In addition to that, Ampco Pittsburgh is 1.49 times more volatile than Quad Graphics. It trades about 0.0 of its total potential returns per unit of risk. Quad Graphics is currently generating about 0.07 per unit of volatility. If you would invest 350.00 in Quad Graphics on September 1, 2024 and sell it today you would earn a total of 374.00 from holding Quad Graphics or generate 106.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ampco Pittsburgh vs. Quad Graphics
Performance |
Timeline |
Ampco Pittsburgh |
Quad Graphics |
Ampco Pittsburgh and Quad Graphics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ampco Pittsburgh and Quad Graphics
The main advantage of trading using opposite Ampco Pittsburgh and Quad Graphics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Quad Graphics 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 Quad Graphics will offset losses from the drop in Quad Graphics' long position.Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
Quad Graphics vs. Maximus | Quad Graphics vs. CBIZ Inc | Quad Graphics vs. First Advantage Corp | Quad Graphics vs. Network 1 Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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