Correlation Between Consumer Portfolio and New Amer
Can any of the company-specific risk be diversified away by investing in both Consumer Portfolio and New Amer 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 Consumer Portfolio and New Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Portfolio Services and New Amer Energy, you can compare the effects of market volatilities on Consumer Portfolio and New Amer 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 Consumer Portfolio with a short position of New Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Portfolio and New Amer.
Diversification Opportunities for Consumer Portfolio and New Amer
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Consumer and New is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Portfolio Services and New Amer Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Amer Energy and Consumer Portfolio 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 Consumer Portfolio Services are associated (or correlated) with New Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Amer Energy has no effect on the direction of Consumer Portfolio i.e., Consumer Portfolio and New Amer go up and down completely randomly.
Pair Corralation between Consumer Portfolio and New Amer
If you would invest 825.00 in Consumer Portfolio Services on August 30, 2024 and sell it today you would earn a total of 197.00 from holding Consumer Portfolio Services or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Consumer Portfolio Services vs. New Amer Energy
Performance |
| Timeline |
| Consumer Portfolio |
| New Amer Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consumer Portfolio and New Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Portfolio and New Amer
The main advantage of trading using opposite Consumer Portfolio and New Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Portfolio position performs unexpectedly, New Amer 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 New Amer will offset losses from the drop in New Amer's long position.| Consumer Portfolio vs. Atlanticus Holdings Corp | Consumer Portfolio vs. Mill City Ventures | Consumer Portfolio vs. Nelnet Inc | Consumer Portfolio vs. Senmiao Technology |
| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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