Correlation Between Ampco Pittsburgh and Samfine Creation
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Samfine Creation 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 Samfine Creation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Samfine Creation Holdings, you can compare the effects of market volatilities on Ampco Pittsburgh and Samfine Creation 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 Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Samfine Creation.
Diversification Opportunities for Ampco Pittsburgh and Samfine Creation
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ampco and Samfine is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings 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 Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Samfine Creation go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Samfine Creation
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 3.64 times less return on investment than Samfine Creation. But when comparing it to its historical volatility, Ampco Pittsburgh is 2.88 times less risky than Samfine Creation. It trades about 0.02 of its potential returns per unit of risk. Samfine Creation Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Samfine Creation Holdings on November 8, 2024 and sell it today you would lose (418.00) from holding Samfine Creation Holdings or give up 78.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.17% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Samfine Creation Holdings
Performance |
| Timeline |
| Ampco Pittsburgh |
| Samfine Creation Holdings |
Ampco Pittsburgh and Samfine Creation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Samfine Creation
The main advantage of trading using opposite Ampco Pittsburgh and Samfine Creation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Samfine Creation 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 Samfine Creation will offset losses from the drop in Samfine Creation's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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