Correlation Between New Amer and Consumer Portfolio
Can any of the company-specific risk be diversified away by investing in both New Amer and Consumer Portfolio 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 New Amer and Consumer Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Amer Energy and Consumer Portfolio Services, you can compare the effects of market volatilities on New Amer and Consumer Portfolio 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 New Amer with a short position of Consumer Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Amer and Consumer Portfolio.
Diversification Opportunities for New Amer and Consumer Portfolio
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Consumer is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding New Amer Energy and Consumer Portfolio Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Portfolio and New Amer 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 New Amer Energy are associated (or correlated) with Consumer Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Portfolio has no effect on the direction of New Amer i.e., New Amer and Consumer Portfolio go up and down completely randomly.
Pair Corralation between New Amer and Consumer Portfolio
If you would invest 825.00 in Consumer Portfolio Services on August 30, 2024 and sell it today you would earn a total of 197.00 from holding Consumer Portfolio Services or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
New Amer Energy vs. Consumer Portfolio Services
Performance |
| Timeline |
| New Amer Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Consumer Portfolio |
New Amer and Consumer Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Amer and Consumer Portfolio
The main advantage of trading using opposite New Amer and Consumer Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Amer position performs unexpectedly, Consumer Portfolio 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 Consumer Portfolio will offset losses from the drop in Consumer Portfolio's long position.| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
| Consumer Portfolio vs. Atlanticus Holdings Corp | Consumer Portfolio vs. Mill City Ventures | Consumer Portfolio vs. Nelnet Inc | Consumer Portfolio vs. Senmiao Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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