Correlation Between AMCON Distributing and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Proficient Auto 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 Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Proficient Auto Logistics,, you can compare the effects of market volatilities on AMCON Distributing and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Proficient Auto.
Diversification Opportunities for AMCON Distributing and Proficient Auto
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and Proficient is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Proficient Auto go up and down completely randomly.
Pair Corralation between AMCON Distributing and Proficient Auto
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Proficient Auto. In addition to that, AMCON Distributing is 1.02 times more volatile than Proficient Auto Logistics,. It trades about -0.04 of its total potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.03 per unit of volatility. If you would invest 1,042 in Proficient Auto Logistics, on October 30, 2024 and sell it today you would earn a total of 14.00 from holding Proficient Auto Logistics, or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Proficient Auto Logistics,
Performance |
| Timeline |
| AMCON Distributing |
| Proficient Auto Logi |
AMCON Distributing and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Proficient Auto
The main advantage of trading using opposite AMCON Distributing and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto'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 |
| Proficient Auto vs. Take Two Interactive Software | Proficient Auto vs. SohuCom | Proficient Auto vs. Playtika Holding Corp | Proficient Auto vs. Roblox Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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