Correlation Between Ampco Pittsburgh and Interface
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Interface 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 Interface into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Interface, you can compare the effects of market volatilities on Ampco Pittsburgh and Interface 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 Interface. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Interface.
Diversification Opportunities for Ampco Pittsburgh and Interface
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ampco and Interface is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Interface in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interface 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 Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interface has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Interface go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Interface
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 5.28 times less return on investment than Interface. In addition to that, Ampco Pittsburgh is 1.74 times more volatile than Interface. It trades about 0.01 of its total potential returns per unit of risk. Interface is currently generating about 0.08 per unit of volatility. If you would invest 1,032 in Interface on August 30, 2024 and sell it today you would earn a total of 1,620 from holding Interface or generate 156.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Interface
Performance |
| Timeline |
| Ampco Pittsburgh |
| Interface |
Ampco Pittsburgh and Interface Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Interface
The main advantage of trading using opposite Ampco Pittsburgh and Interface positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Interface 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 Interface will offset losses from the drop in Interface's long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
| Interface vs. Quanex Building Products | Interface vs. Janus International Group | Interface vs. Apogee Enterprises | Interface vs. Gibraltar Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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