Correlation Between AMCON Distributing and Planet Image
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing and Planet Image 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 Planet Image into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and Planet Image International, you can compare the effects of market volatilities on AMCON Distributing and Planet Image 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 Planet Image. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Planet Image.
Diversification Opportunities for AMCON Distributing and Planet Image
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and Planet is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Planet Image International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Image Interna 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 Planet Image. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Image Interna has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Planet Image go up and down completely randomly.
Pair Corralation between AMCON Distributing and Planet Image
Considering the 90-day investment horizon AMCON Distributing is expected to generate 1.54 times less return on investment than Planet Image. But when comparing it to its historical volatility, AMCON Distributing is 1.91 times less risky than Planet Image. It trades about 0.05 of its potential returns per unit of risk. Planet Image International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Planet Image International on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Planet Image International or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. Planet Image International
Performance |
| Timeline |
| AMCON Distributing |
| Planet Image Interna |
AMCON Distributing and Planet Image Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and Planet Image
The main advantage of trading using opposite AMCON Distributing and Planet Image positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing position performs unexpectedly, Planet Image 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 Planet Image will offset losses from the drop in Planet Image'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 |
| Planet Image vs. ServiceNow | Planet Image vs. Red Branch Technologies | Planet Image vs. AMCON Distributing | Planet Image vs. Evertz Technologies Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |