Correlation Between NASB Financial and AMREP
Can any of the company-specific risk be diversified away by investing in both NASB Financial 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 NASB Financial and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NASB Financial and AMREP, you can compare the effects of market volatilities on NASB Financial 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 NASB Financial with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NASB Financial and AMREP.
Diversification Opportunities for NASB Financial and AMREP
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NASB and AMREP is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding NASB Financial and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and NASB Financial 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 NASB Financial 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 NASB Financial i.e., NASB Financial and AMREP go up and down completely randomly.
Pair Corralation between NASB Financial and AMREP
If you would invest 3,000 in AMREP on August 28, 2024 and sell it today you would earn a total of 491.00 from holding AMREP or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
NASB Financial vs. AMREP
Performance |
| Timeline |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMREP |
NASB Financial and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NASB Financial and AMREP
The main advantage of trading using opposite NASB Financial and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NASB Financial 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.| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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