Correlation Between Civeo Corp and AMREP
Can any of the company-specific risk be diversified away by investing in both Civeo Corp and AMREP 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 Civeo Corp and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civeo Corp and AMREP, you can compare the effects of market volatilities on Civeo Corp and AMREP 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 Civeo Corp with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civeo Corp and AMREP.
Diversification Opportunities for Civeo Corp and AMREP
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Civeo and AMREP is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and Civeo Corp 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 Civeo Corp are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Civeo Corp i.e., Civeo Corp and AMREP go up and down completely randomly.
Pair Corralation between Civeo Corp and AMREP
Given the investment horizon of 90 days Civeo Corp is expected to under-perform the AMREP. But the stock apears to be less risky and, when comparing its historical volatility, Civeo Corp is 2.19 times less risky than AMREP. The stock trades about -0.12 of its potential returns per unit of risk. The AMREP is currently generating about 0.2 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Civeo Corp vs. AMREP
Performance |
| Timeline |
| Civeo Corp |
| AMREP |
Civeo Corp and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civeo Corp and AMREP
The main advantage of trading using opposite Civeo Corp and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civeo Corp position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| Civeo Corp vs. Network 1 Technologies | Civeo Corp vs. BrightView Holdings | Civeo Corp vs. Maximus | Civeo Corp vs. CBIZ Inc |
| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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