Correlation Between AMREP and Universal Technical
Can any of the company-specific risk be diversified away by investing in both AMREP and Universal Technical 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 Universal Technical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Universal Technical Institute, you can compare the effects of market volatilities on AMREP and Universal Technical 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 Universal Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Universal Technical.
Diversification Opportunities for AMREP and Universal Technical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMREP and Universal is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Universal Technical Institute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Technical 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 Universal Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Technical has no effect on the direction of AMREP i.e., AMREP and Universal Technical go up and down completely randomly.
Pair Corralation between AMREP and Universal Technical
Considering the 90-day investment horizon AMREP is expected to generate 1.21 times more return on investment than Universal Technical. However, AMREP is 1.21 times more volatile than Universal Technical Institute. It trades about 0.11 of its potential returns per unit of risk. Universal Technical Institute is currently generating about 0.13 per unit of risk. If you would invest 1,633 in AMREP on August 26, 2024 and sell it today you would earn a total of 2,087 from holding AMREP or generate 127.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMREP vs. Universal Technical Institute
Performance |
| Timeline |
| AMREP |
| Universal Technical |
AMREP and Universal Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Universal Technical
The main advantage of trading using opposite AMREP and Universal Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Universal Technical 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 Universal Technical will offset losses from the drop in Universal Technical's long position.| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
| Universal Technical vs. Laureate Education | Universal Technical vs. Strategic Education | Universal Technical vs. Grand Canyon Education | Universal Technical vs. American Public Education |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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