Correlation Between AMREP and Allient
Can any of the company-specific risk be diversified away by investing in both AMREP and Allient 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 AMREP and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Allient, you can compare the effects of market volatilities on AMREP and Allient 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 AMREP with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Allient.
Diversification Opportunities for AMREP and Allient
Very weak diversification
The 3 months correlation between AMREP and Allient is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and AMREP 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 AMREP are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of AMREP i.e., AMREP and Allient go up and down completely randomly.
Pair Corralation between AMREP and Allient
Considering the 90-day investment horizon AMREP is expected to generate 2.01 times less return on investment than Allient. In addition to that, AMREP is 1.65 times more volatile than Allient. It trades about 0.17 of its total potential returns per unit of risk. Allient is currently generating about 0.56 per unit of volatility. If you would invest 1,805 in Allient on August 29, 2024 and sell it today you would earn a total of 729.00 from holding Allient or generate 40.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMREP vs. Allient
Performance |
| Timeline |
| AMREP |
| Allient |
AMREP and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Allient
The main advantage of trading using opposite AMREP and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
| Allient vs. Summa Silver Corp | Allient vs. Paysafe | Allient vs. Red Branch Technologies | Allient vs. Arrow Electronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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