Correlation Between Ampco Pittsburgh and Safe Bulkers
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Safe Bulkers 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 Safe Bulkers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Safe Bulkers, you can compare the effects of market volatilities on Ampco Pittsburgh and Safe Bulkers 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 Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Safe Bulkers.
Diversification Opportunities for Ampco Pittsburgh and Safe Bulkers
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ampco and Safe is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers 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 Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Safe Bulkers go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Safe Bulkers
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 1.9 times more return on investment than Safe Bulkers. However, Ampco Pittsburgh is 1.9 times more volatile than Safe Bulkers. It trades about 0.25 of its potential returns per unit of risk. Safe Bulkers is currently generating about 0.0 per unit of risk. If you would invest 209.00 in Ampco Pittsburgh on November 1, 2024 and sell it today you would earn a total of 43.00 from holding Ampco Pittsburgh or generate 20.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Safe Bulkers
Performance |
| Timeline |
| Ampco Pittsburgh |
| Safe Bulkers |
Ampco Pittsburgh and Safe Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Safe Bulkers
The main advantage of trading using opposite Ampco Pittsburgh and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Safe Bulkers 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 Safe Bulkers will offset losses from the drop in Safe Bulkers' long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
| Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Costamare | Safe Bulkers vs. Navios Maritime Partners | Safe Bulkers 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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