Correlation Between Cal-Bay Intl and Ameritrust Corp
Can any of the company-specific risk be diversified away by investing in both Cal-Bay Intl and Ameritrust Corp 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 Cal-Bay Intl and Ameritrust Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Bay Intl and Ameritrust Corp, you can compare the effects of market volatilities on Cal-Bay Intl and Ameritrust Corp 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 Cal-Bay Intl with a short position of Ameritrust Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Bay Intl and Ameritrust Corp.
Diversification Opportunities for Cal-Bay Intl and Ameritrust Corp
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Cal-Bay and Ameritrust is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cal Bay Intl and Ameritrust Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrust Corp and Cal-Bay Intl 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 Cal Bay Intl are associated (or correlated) with Ameritrust Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrust Corp has no effect on the direction of Cal-Bay Intl i.e., Cal-Bay Intl and Ameritrust Corp go up and down completely randomly.
Pair Corralation between Cal-Bay Intl and Ameritrust Corp
If you would invest 0.02 in Ameritrust Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Ameritrust Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cal Bay Intl vs. Ameritrust Corp
Performance |
| Timeline |
| Cal Bay Intl |
| Ameritrust Corp |
Cal-Bay Intl and Ameritrust Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal-Bay Intl and Ameritrust Corp
The main advantage of trading using opposite Cal-Bay Intl and Ameritrust Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal-Bay Intl position performs unexpectedly, Ameritrust Corp 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 Ameritrust Corp will offset losses from the drop in Ameritrust Corp's long position.| Cal-Bay Intl vs. Halitron | Cal-Bay Intl vs. First BITCoin Capital | Cal-Bay Intl vs. Blackstar Enterprise Group | Cal-Bay Intl vs. Armada Mercantile |
| Ameritrust Corp vs. Morgan Stanley | Ameritrust Corp vs. Goldman Sachs Group | Ameritrust Corp vs. HUMANA INC | Ameritrust Corp vs. SCOR PK |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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