Correlation Between AMCON Distributing and CAPITAL
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By analyzing existing cross correlation between AMCON Distributing and CAPITAL ONE FINANCIAL, you can compare the effects of market volatilities on AMCON Distributing and CAPITAL 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 CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and CAPITAL.
Diversification Opportunities for AMCON Distributing and CAPITAL
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMCON and CAPITAL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and CAPITAL ONE FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINANCIAL 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 CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINANCIAL has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and CAPITAL go up and down completely randomly.
Pair Corralation between AMCON Distributing and CAPITAL
Considering the 90-day investment horizon AMCON Distributing is expected to generate 5.57 times more return on investment than CAPITAL. However, AMCON Distributing is 5.57 times more volatile than CAPITAL ONE FINANCIAL. It trades about -0.01 of its potential returns per unit of risk. CAPITAL ONE FINANCIAL is currently generating about -0.12 per unit of risk. If you would invest 14,175 in AMCON Distributing on September 3, 2024 and sell it today you would lose (768.00) from holding AMCON Distributing or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. CAPITAL ONE FINANCIAL
Performance |
| Timeline |
| AMCON Distributing |
| CAPITAL ONE FINANCIAL |
AMCON Distributing and CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and CAPITAL
The main advantage of trading using opposite AMCON Distributing and CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, CAPITAL 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 CAPITAL will offset losses from the drop in CAPITAL'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 |
| CAPITAL vs. BJs Restaurants | CAPITAL vs. AMCON Distributing | CAPITAL vs. Shake Shack | CAPITAL vs. Chipotle Mexican Grill |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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