Correlation Between AMCON Distributing and Ault Alliance
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Ault Alliance 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 AMCON Distributing and Ault Alliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Ault Alliance, you can compare the effects of market volatilities on AMCON Distributing and Ault Alliance 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 AMCON Distributing with a short position of Ault Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Ault Alliance.
Diversification Opportunities for AMCON Distributing and Ault Alliance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMCON and Ault is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Ault Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Alliance and AMCON Distributing 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 AMCON Distributing are associated (or correlated) with Ault Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Alliance has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Ault Alliance go up and down completely randomly.
Pair Corralation between AMCON Distributing and Ault Alliance
Considering the 90-day investment horizon AMCON Distributing is expected to generate 0.39 times more return on investment than Ault Alliance. However, AMCON Distributing is 2.58 times less risky than Ault Alliance. It trades about 0.0 of its potential returns per unit of risk. Ault Alliance is currently generating about -0.18 per unit of risk. If you would invest 17,557 in AMCON Distributing on September 13, 2024 and sell it today you would lose (3,944) from holding AMCON Distributing or give up 22.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.76% |
| Values | Daily Returns |
AMCON Distributing vs. Ault Alliance
Performance |
| Timeline |
| AMCON Distributing |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMCON Distributing and Ault Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Ault Alliance
The main advantage of trading using opposite AMCON Distributing and Ault Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Ault Alliance 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 Ault Alliance will offset losses from the drop in Ault Alliance's long position.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| Ault Alliance vs. Where Food Comes | Ault Alliance vs. AMCON Distributing | Ault Alliance vs. BOS Better Online | Ault Alliance vs. Hf Foods Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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