Correlation Between AMCON Distributing and Winmark
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Winmark 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 Winmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Winmark, you can compare the effects of market volatilities on AMCON Distributing and Winmark 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 Winmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Winmark.
Diversification Opportunities for AMCON Distributing and Winmark
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMCON and Winmark is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark 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 Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Winmark go up and down completely randomly.
Pair Corralation between AMCON Distributing and Winmark
Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the Winmark. In addition to that, AMCON Distributing is 1.56 times more volatile than Winmark. It trades about -0.03 of its total potential returns per unit of risk. Winmark is currently generating about 0.0 per unit of volatility. If you would invest 41,934 in Winmark on August 26, 2024 and sell it today you would lose (1,607) from holding Winmark or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.99% |
| Values | Daily Returns |
AMCON Distributing vs. Winmark
Performance |
| Timeline |
| AMCON Distributing |
| Winmark |
AMCON Distributing and Winmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Winmark
The main advantage of trading using opposite AMCON Distributing and Winmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Winmark 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 Winmark will offset losses from the drop in Winmark'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 |
| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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