Correlation Between AMCON Distributing and Qantas Airways
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Qantas Airways 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 Qantas Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Qantas Airways Ltd, you can compare the effects of market volatilities on AMCON Distributing and Qantas Airways 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 Qantas Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Qantas Airways.
Diversification Opportunities for AMCON Distributing and Qantas Airways
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMCON and Qantas is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Qantas Airways Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qantas Airways 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 Qantas Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qantas Airways has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Qantas Airways go up and down completely randomly.
Pair Corralation between AMCON Distributing and Qantas Airways
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Qantas Airways. In addition to that, AMCON Distributing is 2.84 times more volatile than Qantas Airways Ltd. It trades about -0.02 of its total potential returns per unit of risk. Qantas Airways Ltd is currently generating about 0.19 per unit of volatility. If you would invest 2,693 in Qantas Airways Ltd on August 28, 2024 and sell it today you would earn a total of 194.00 from holding Qantas Airways Ltd or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AMCON Distributing vs. Qantas Airways Ltd
Performance |
| Timeline |
| AMCON Distributing |
| Qantas Airways |
AMCON Distributing and Qantas Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Qantas Airways
The main advantage of trading using opposite AMCON Distributing and Qantas Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Qantas Airways 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 Qantas Airways will offset losses from the drop in Qantas Airways' 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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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