Correlation Between Ellsworth Convertible and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible and Ameritrans Capital 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 Ellsworth Convertible and Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and Ameritrans Capital Corp, you can compare the effects of market volatilities on Ellsworth Convertible and Ameritrans Capital 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 Ellsworth Convertible with a short position of Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Ameritrans Capital.
Diversification Opportunities for Ellsworth Convertible and Ameritrans Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ellsworth and Ameritrans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp and Ellsworth Convertible 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 Ellsworth Convertible Growth are associated (or correlated) with Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Ellsworth Convertible i.e., Ellsworth Convertible and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Ameritrans Capital
If you would invest 911.00 in Ellsworth Convertible Growth on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Ellsworth Convertible Growth or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Ellsworth Convertible |
| Ameritrans Capital Corp |
Ellsworth Convertible and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Ameritrans Capital
The main advantage of trading using opposite Ellsworth Convertible and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| Ameritrans Capital vs. American Airlines Group | Ameritrans Capital vs. Delta Air Lines | Ameritrans Capital vs. Hooker Furniture | Ameritrans Capital vs. Tyson Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |