Correlation Between AMREP and NASB Financial
Can any of the company-specific risk be diversified away by investing in both AMREP and NASB Financial 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 NASB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and NASB Financial, you can compare the effects of market volatilities on AMREP and NASB Financial 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 NASB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and NASB Financial.
Diversification Opportunities for AMREP and NASB Financial
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMREP and NASB is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and NASB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NASB Financial 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 NASB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASB Financial has no effect on the direction of AMREP i.e., AMREP and NASB Financial go up and down completely randomly.
Pair Corralation between AMREP and NASB Financial
If you would invest 2,207 in AMREP on August 28, 2024 and sell it today you would earn a total of 1,334 from holding AMREP or generate 60.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
AMREP vs. NASB Financial
Performance |
| Timeline |
| AMREP |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMREP and NASB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and NASB Financial
The main advantage of trading using opposite AMREP and NASB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, NASB Financial 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 NASB Financial will offset losses from the drop in NASB Financial's long position.| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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