Correlation Between Amphenol and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Amphenol and GOLD ROAD 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 Amphenol and GOLD ROAD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphenol and GOLD ROAD RES, you can compare the effects of market volatilities on Amphenol and GOLD ROAD 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 Amphenol with a short position of GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphenol and GOLD ROAD.
Diversification Opportunities for Amphenol and GOLD ROAD
Poor diversification
The 3 months correlation between Amphenol and GOLD is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amphenol and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES and Amphenol 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 Amphenol are associated (or correlated) with GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Amphenol i.e., Amphenol and GOLD ROAD go up and down completely randomly.
Pair Corralation between Amphenol and GOLD ROAD
Assuming the 90 days horizon Amphenol is expected to generate 0.54 times more return on investment than GOLD ROAD. However, Amphenol is 1.86 times less risky than GOLD ROAD. It trades about 0.1 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.03 per unit of risk. If you would invest 3,502 in Amphenol on September 14, 2024 and sell it today you would earn a total of 3,526 from holding Amphenol or generate 100.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphenol vs. GOLD ROAD RES
Performance |
| Timeline |
| Amphenol |
| GOLD ROAD RES |
Amphenol and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphenol and GOLD ROAD
The main advantage of trading using opposite Amphenol and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphenol position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Amphenol vs. GOLD ROAD RES | Amphenol vs. QUEEN S ROAD | Amphenol vs. Fukuyama Transporting Co | Amphenol vs. PennyMac Mortgage Investment |
| GOLD ROAD vs. AUST AGRICULTURAL | GOLD ROAD vs. Hanison Construction Holdings | GOLD ROAD vs. Hitachi Construction Machinery | GOLD ROAD vs. H FARM SPA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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