Correlation Between AMCON Distributing and Gap,
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Gap, 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 Gap, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and The Gap,, you can compare the effects of market volatilities on AMCON Distributing and Gap, 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 Gap,. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Gap,.
Diversification Opportunities for AMCON Distributing and Gap,
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMCON and Gap, is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and The Gap, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap, 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 Gap,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap, has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Gap, go up and down completely randomly.
Pair Corralation between AMCON Distributing and Gap,
Considering the 90-day investment horizon AMCON Distributing is expected to generate 40.32 times less return on investment than Gap,. But when comparing it to its historical volatility, AMCON Distributing is 1.08 times less risky than Gap,. It trades about 0.0 of its potential returns per unit of risk. The Gap, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,337 in The Gap, on August 29, 2024 and sell it today you would earn a total of 1,078 from holding The Gap, or generate 80.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
AMCON Distributing vs. The Gap,
Performance |
| Timeline |
| AMCON Distributing |
| Gap, |
AMCON Distributing and Gap, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Gap,
The main advantage of trading using opposite AMCON Distributing and Gap, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Gap, 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 Gap, will offset losses from the drop in Gap,'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 |
| Gap, vs. Albertsons Companies | Gap, vs. Red Branch Technologies | Gap, vs. Acm Research | Gap, vs. ServiceNow |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |