Correlation Between AMCON Distributing and Evans Bancorp
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Evans Bancorp 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 Evans Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Evans Bancorp, you can compare the effects of market volatilities on AMCON Distributing and Evans Bancorp 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 Evans Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Evans Bancorp.
Diversification Opportunities for AMCON Distributing and Evans Bancorp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMCON and Evans is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Evans Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evans Bancorp 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 Evans Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evans Bancorp has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Evans Bancorp go up and down completely randomly.
Pair Corralation between AMCON Distributing and Evans Bancorp
Considering the 90-day investment horizon AMCON Distributing is expected to generate 2.63 times more return on investment than Evans Bancorp. However, AMCON Distributing is 2.63 times more volatile than Evans Bancorp. It trades about 0.16 of its potential returns per unit of risk. Evans Bancorp is currently generating about 0.18 per unit of risk. If you would invest 13,002 in AMCON Distributing on November 9, 2024 and sell it today you would earn a total of 1,908 from holding AMCON Distributing or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Evans Bancorp
Performance |
| Timeline |
| AMCON Distributing |
| Evans Bancorp |
AMCON Distributing and Evans Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Evans Bancorp
The main advantage of trading using opposite AMCON Distributing and Evans Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Evans Bancorp 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 Evans Bancorp will offset losses from the drop in Evans Bancorp's long position.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| Evans Bancorp vs. First Community | Evans Bancorp vs. Oak Valley Bancorp | Evans Bancorp vs. First Financial Northwest | Evans Bancorp vs. ESSA Bancorp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |