Correlation Between Tungray Technologies and Ampco Pittsburgh
Can any of the company-specific risk be diversified away by investing in both Tungray Technologies and Ampco Pittsburgh 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 Tungray Technologies and Ampco Pittsburgh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tungray Technologies Class and Ampco Pittsburgh, you can compare the effects of market volatilities on Tungray Technologies and Ampco Pittsburgh 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 Tungray Technologies with a short position of Ampco Pittsburgh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tungray Technologies and Ampco Pittsburgh.
Diversification Opportunities for Tungray Technologies and Ampco Pittsburgh
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tungray and Ampco is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tungray Technologies Class and Ampco Pittsburgh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh and Tungray Technologies 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 Tungray Technologies Class are associated (or correlated) with Ampco Pittsburgh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampco Pittsburgh has no effect on the direction of Tungray Technologies i.e., Tungray Technologies and Ampco Pittsburgh go up and down completely randomly.
Pair Corralation between Tungray Technologies and Ampco Pittsburgh
Given the investment horizon of 90 days Tungray Technologies Class is expected to generate 1.46 times more return on investment than Ampco Pittsburgh. However, Tungray Technologies is 1.46 times more volatile than Ampco Pittsburgh. It trades about 0.01 of its potential returns per unit of risk. Ampco Pittsburgh is currently generating about 0.01 per unit of risk. If you would invest 400.00 in Tungray Technologies Class on September 4, 2024 and sell it today you would lose (145.00) from holding Tungray Technologies Class or give up 36.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 64.78% |
| Values | Daily Returns |
Tungray Technologies Class vs. Ampco Pittsburgh
Performance |
| Timeline |
| Tungray Technologies |
| Ampco Pittsburgh |
Tungray Technologies and Ampco Pittsburgh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tungray Technologies and Ampco Pittsburgh
The main advantage of trading using opposite Tungray Technologies and Ampco Pittsburgh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tungray Technologies position performs unexpectedly, Ampco Pittsburgh 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 Ampco Pittsburgh will offset losses from the drop in Ampco Pittsburgh's long position.| Tungray Technologies vs. Desktop Metal | Tungray Technologies vs. Fabrinet | Tungray Technologies vs. Kimball Electronics | Tungray Technologies vs. Knowles Cor |
| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. ESAB Corp | Ampco Pittsburgh vs. Gulf Island Fabrication |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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