Correlation Between Autosports and Ampol
Can any of the company-specific risk be diversified away by investing in both Autosports and Ampol 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 Autosports and Ampol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Ampol, you can compare the effects of market volatilities on Autosports and Ampol 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 Autosports with a short position of Ampol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Ampol.
Diversification Opportunities for Autosports and Ampol
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Autosports and Ampol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and Ampol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampol and Autosports 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 Autosports Group are associated (or correlated) with Ampol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampol has no effect on the direction of Autosports i.e., Autosports and Ampol go up and down completely randomly.
Pair Corralation between Autosports and Ampol
Assuming the 90 days trading horizon Autosports Group is expected to under-perform the Ampol. In addition to that, Autosports is 1.18 times more volatile than Ampol. It trades about -0.05 of its total potential returns per unit of risk. Ampol is currently generating about -0.03 per unit of volatility. If you would invest 2,911 in Ampol on September 12, 2024 and sell it today you would lose (111.00) from holding Ampol or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. Ampol
Performance |
| Timeline |
| Autosports Group |
| Ampol |
Autosports and Ampol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Ampol
The main advantage of trading using opposite Autosports and Ampol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, Ampol 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 Ampol will offset losses from the drop in Ampol's long position.| Autosports vs. Toys R Us | Autosports vs. Metro Mining | Autosports vs. Carlton Investments | Autosports vs. Argo Investments |
| Ampol vs. Duxton Broadacre Farms | Ampol vs. Ironbark Capital | Ampol vs. Sandon Capital Investments | Ampol vs. Mirrabooka Investments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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