Correlation Between AMCON Distributing and GCP Applied
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and GCP Applied 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 GCP Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and GCP Applied Technologies, you can compare the effects of market volatilities on AMCON Distributing and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and GCP Applied.
Diversification Opportunities for AMCON Distributing and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMCON and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and GCP Applied go up and down completely randomly.
Pair Corralation between AMCON Distributing and GCP Applied
If you would invest (100.00) in GCP Applied Technologies on October 14, 2024 and sell it today you would earn a total of 100.00 from holding GCP Applied Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AMCON Distributing vs. GCP Applied Technologies
Performance |
| Timeline |
| AMCON Distributing |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMCON Distributing and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and GCP Applied
The main advantage of trading using opposite AMCON Distributing and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied'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 |
| GCP Applied vs. Cannae Holdings | GCP Applied vs. WPP PLC ADR | GCP Applied vs. Shake Shack | GCP Applied vs. Cracker Barrel Old |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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