Correlation Between DSS and AMREP
Can any of the company-specific risk be diversified away by investing in both DSS and AMREP 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 DSS and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSS Inc and AMREP, you can compare the effects of market volatilities on DSS and AMREP 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 DSS with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSS and AMREP.
Diversification Opportunities for DSS and AMREP
Pay attention - limited upside
The 3 months correlation between DSS and AMREP is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding DSS Inc and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and DSS 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 DSS Inc are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of DSS i.e., DSS and AMREP go up and down completely randomly.
Pair Corralation between DSS and AMREP
Considering the 90-day investment horizon DSS Inc is expected to under-perform the AMREP. In addition to that, DSS is 1.29 times more volatile than AMREP. It trades about -0.11 of its total potential returns per unit of risk. AMREP is currently generating about 0.03 per unit of volatility. If you would invest 3,558 in AMREP on September 13, 2024 and sell it today you would earn a total of 42.00 from holding AMREP or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSS Inc vs. AMREP
Performance |
| Timeline |
| DSS Inc |
| AMREP |
DSS and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSS and AMREP
The main advantage of trading using opposite DSS and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSS position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.The idea behind DSS Inc and AMREP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |