Correlation Between AMCON Distributing and 451102CC9
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By analyzing existing cross correlation between AMCON Distributing and US451102CC97, you can compare the effects of market volatilities on AMCON Distributing and 451102CC9 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 451102CC9. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and 451102CC9.
Diversification Opportunities for AMCON Distributing and 451102CC9
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMCON and 451102CC9 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and US451102CC97 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US451102CC97 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 451102CC9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US451102CC97 has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and 451102CC9 go up and down completely randomly.
Pair Corralation between AMCON Distributing and 451102CC9
Considering the 90-day investment horizon AMCON Distributing is expected to generate 4.2 times more return on investment than 451102CC9. However, AMCON Distributing is 4.2 times more volatile than US451102CC97. It trades about -0.02 of its potential returns per unit of risk. US451102CC97 is currently generating about -0.19 per unit of risk. If you would invest 13,481 in AMCON Distributing on August 28, 2024 and sell it today you would lose (618.00) from holding AMCON Distributing or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AMCON Distributing vs. US451102CC97
Performance |
| Timeline |
| AMCON Distributing |
| US451102CC97 |
AMCON Distributing and 451102CC9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and 451102CC9
The main advantage of trading using opposite AMCON Distributing and 451102CC9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, 451102CC9 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 451102CC9 will offset losses from the drop in 451102CC9'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 |
| 451102CC9 vs. US Global Investors | 451102CC9 vs. Alvotech | 451102CC9 vs. Franklin Wireless Corp | 451102CC9 vs. Bausch Lomb Corp |
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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