Correlation Between AMCON Distributing and CONOCO
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By analyzing existing cross correlation between AMCON Distributing and CONOCO FDG 725, you can compare the effects of market volatilities on AMCON Distributing and CONOCO 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 CONOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and CONOCO.
Diversification Opportunities for AMCON Distributing and CONOCO
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMCON and CONOCO is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and CONOCO FDG 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONOCO FDG 725 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 CONOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONOCO FDG 725 has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and CONOCO go up and down completely randomly.
Pair Corralation between AMCON Distributing and CONOCO
Considering the 90-day investment horizon AMCON Distributing is expected to generate 6.24 times more return on investment than CONOCO. However, AMCON Distributing is 6.24 times more volatile than CONOCO FDG 725. It trades about 0.0 of its potential returns per unit of risk. CONOCO FDG 725 is currently generating about -0.18 per unit of risk. If you would invest 13,880 in AMCON Distributing on September 4, 2024 and sell it today you would lose (473.00) from holding AMCON Distributing or give up 3.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.03% |
| Values | Daily Returns |
AMCON Distributing vs. CONOCO FDG 725
Performance |
| Timeline |
| AMCON Distributing |
| CONOCO FDG 725 |
AMCON Distributing and CONOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and CONOCO
The main advantage of trading using opposite AMCON Distributing and CONOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, CONOCO 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 CONOCO will offset losses from the drop in CONOCO'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 |
| CONOCO vs. AmTrust Financial Services | CONOCO vs. Hf Foods Group | CONOCO vs. AMCON Distributing | CONOCO vs. Freedom Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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