Correlation Between AMCON Distributing and 025537AW1
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By analyzing existing cross correlation between AMCON Distributing and AEP 595 01 NOV 32, you can compare the effects of market volatilities on AMCON Distributing and 025537AW1 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 025537AW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and 025537AW1.
Diversification Opportunities for AMCON Distributing and 025537AW1
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMCON and 025537AW1 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and AEP 595 01 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP 595 01 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 025537AW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP 595 01 has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and 025537AW1 go up and down completely randomly.
Pair Corralation between AMCON Distributing and 025537AW1
Considering the 90-day investment horizon AMCON Distributing is expected to generate 4.16 times more return on investment than 025537AW1. However, AMCON Distributing is 4.16 times more volatile than AEP 595 01 NOV 32. It trades about 0.09 of its potential returns per unit of risk. AEP 595 01 NOV 32 is currently generating about -0.16 per unit of risk. If you would invest 13,285 in AMCON Distributing on September 5, 2024 and sell it today you would earn a total of 1,015 from holding AMCON Distributing or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
AMCON Distributing vs. AEP 595 01 NOV 32
Performance |
| Timeline |
| AMCON Distributing |
| AEP 595 01 |
AMCON Distributing and 025537AW1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and 025537AW1
The main advantage of trading using opposite AMCON Distributing and 025537AW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, 025537AW1 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 025537AW1 will offset losses from the drop in 025537AW1'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 |
| 025537AW1 vs. Natural Alternatives International | 025537AW1 vs. VirnetX Holding Corp | 025537AW1 vs. BBB Foods | 025537AW1 vs. AMCON Distributing |
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.
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