Correlation Between Triumph and Ammo Preferred
Can any of the company-specific risk be diversified away by investing in both Triumph and Ammo Preferred 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 Triumph and Ammo Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Group and Ammo Preferred, you can compare the effects of market volatilities on Triumph and Ammo Preferred 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 Triumph with a short position of Ammo Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph and Ammo Preferred.
Diversification Opportunities for Triumph and Ammo Preferred
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triumph and Ammo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Ammo Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ammo Preferred and Triumph 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 Triumph Group are associated (or correlated) with Ammo Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ammo Preferred has no effect on the direction of Triumph i.e., Triumph and Ammo Preferred go up and down completely randomly.
Pair Corralation between Triumph and Ammo Preferred
Considering the 90-day investment horizon Triumph Group is expected to generate 1.99 times more return on investment than Ammo Preferred. However, Triumph is 1.99 times more volatile than Ammo Preferred. It trades about 0.05 of its potential returns per unit of risk. Ammo Preferred is currently generating about 0.01 per unit of risk. If you would invest 1,216 in Triumph Group on September 1, 2024 and sell it today you would earn a total of 709.00 from holding Triumph Group or generate 58.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triumph Group vs. Ammo Preferred
Performance |
| Timeline |
| Triumph Group |
| Ammo Preferred |
Triumph and Ammo Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph and Ammo Preferred
The main advantage of trading using opposite Triumph and Ammo Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph position performs unexpectedly, Ammo Preferred 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 Ammo Preferred will offset losses from the drop in Ammo Preferred's long position.| Triumph vs. Mercury Systems | Triumph vs. Curtiss Wright | Triumph vs. Hexcel | Triumph vs. Ducommun Incorporated |
| Ammo Preferred vs. Ammo Inc | Ammo Preferred vs. XOMA Corporation | Ammo Preferred vs. Presidio Property Trust | Ammo Preferred vs. XOMA Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |