Correlation Between AMREP and Peoples Educational
Can any of the company-specific risk be diversified away by investing in both AMREP and Peoples Educational 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 Peoples Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Peoples Educational Holdings, you can compare the effects of market volatilities on AMREP and Peoples Educational 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 Peoples Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Peoples Educational.
Diversification Opportunities for AMREP and Peoples Educational
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMREP and Peoples is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Peoples Educational Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Educational 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 Peoples Educational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Educational has no effect on the direction of AMREP i.e., AMREP and Peoples Educational go up and down completely randomly.
Pair Corralation between AMREP and Peoples Educational
If you would invest 3,000 in AMREP on August 29, 2024 and sell it today you would earn a total of 491.00 from holding AMREP or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMREP vs. Peoples Educational Holdings
Performance |
| Timeline |
| AMREP |
| Peoples Educational |
AMREP and Peoples Educational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Peoples Educational
The main advantage of trading using opposite AMREP and Peoples Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Peoples Educational 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 Peoples Educational will offset losses from the drop in Peoples Educational's long position.| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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