Correlation Between American Scientf and Marine Products
Can any of the company-specific risk be diversified away by investing in both American Scientf and Marine Products 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 American Scientf and Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Scientf and Marine Products, you can compare the effects of market volatilities on American Scientf and Marine Products 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 American Scientf with a short position of Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Scientf and Marine Products.
Diversification Opportunities for American Scientf and Marine Products
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Marine is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Scientf and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products and American Scientf 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 American Scientf are associated (or correlated) with Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of American Scientf i.e., American Scientf and Marine Products go up and down completely randomly.
Pair Corralation between American Scientf and Marine Products
Given the investment horizon of 90 days American Scientf is expected to generate 17.72 times more return on investment than Marine Products. However, American Scientf is 17.72 times more volatile than Marine Products. It trades about 0.04 of its potential returns per unit of risk. Marine Products is currently generating about -0.01 per unit of risk. If you would invest 0.01 in American Scientf on October 9, 2024 and sell it today you would lose 0.00 from holding American Scientf or give up 0.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
American Scientf vs. Marine Products
Performance |
| Timeline |
| American Scientf |
| Marine Products |
American Scientf and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Scientf and Marine Products
The main advantage of trading using opposite American Scientf and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Scientf position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| American Scientf vs. Teradyne | American Scientf vs. Willamette Valley Vineyards | American Scientf vs. Oatly Group AB | American Scientf vs. Everspin Technologies |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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