Correlation Between AMCON Distributing and Land Securities
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Land Securities Group, you can compare the effects of market volatilities on AMCON Distributing and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Land Securities.
Diversification Opportunities for AMCON Distributing and Land Securities
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMCON and Land is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Land Securities go up and down completely randomly.
Pair Corralation between AMCON Distributing and Land Securities
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.6 times less return on investment than Land Securities. In addition to that, AMCON Distributing is 1.35 times more volatile than Land Securities Group. It trades about 0.06 of its total potential returns per unit of risk. Land Securities Group is currently generating about 0.12 per unit of volatility. If you would invest 726.00 in Land Securities Group on September 15, 2024 and sell it today you would earn a total of 51.00 from holding Land Securities Group or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Land Securities Group
Performance |
| Timeline |
| AMCON Distributing |
| Land Securities Group |
AMCON Distributing and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Land Securities
The main advantage of trading using opposite AMCON Distributing and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| Land Securities vs. Global Net Lease, | Land Securities vs. VICI Properties | Land Securities vs. British Land | Land Securities vs. Highlands REIT |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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