Correlation Between AMCON Distributing and Pure Cycle
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Pure Cycle 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 Pure Cycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Pure Cycle, you can compare the effects of market volatilities on AMCON Distributing and Pure Cycle 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 Pure Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Pure Cycle.
Diversification Opportunities for AMCON Distributing and Pure Cycle
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and Pure is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Pure Cycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Cycle 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 Pure Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Cycle has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Pure Cycle go up and down completely randomly.
Pair Corralation between AMCON Distributing and Pure Cycle
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Pure Cycle. In addition to that, AMCON Distributing is 1.58 times more volatile than Pure Cycle. It trades about -0.01 of its total potential returns per unit of risk. Pure Cycle is currently generating about 0.06 per unit of volatility. If you would invest 1,004 in Pure Cycle on September 14, 2024 and sell it today you would earn a total of 327.00 from holding Pure Cycle or generate 32.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.14% |
| Values | Daily Returns |
AMCON Distributing vs. Pure Cycle
Performance |
| Timeline |
| AMCON Distributing |
| Pure Cycle |
AMCON Distributing and Pure Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Pure Cycle
The main advantage of trading using opposite AMCON Distributing and Pure Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Pure Cycle 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 Pure Cycle will offset losses from the drop in Pure Cycle's long position.| AMCON Distributing vs. Steven Madden | AMCON Distributing vs. Vera Bradley | AMCON Distributing vs. Caleres | AMCON Distributing vs. Wolverine World Wide |
| Pure Cycle vs. Cadiz Inc | Pure Cycle vs. Artesian Resources | Pure Cycle vs. Global Water Resources | Pure Cycle vs. Parke 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |