Correlation Between Ametek and Bankers Investment

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Can any of the company-specific risk be diversified away by investing in both Ametek and Bankers Investment 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 Ametek and Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ametek Inc and Bankers Investment Trust, you can compare the effects of market volatilities on Ametek and Bankers Investment 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 Ametek with a short position of Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ametek and Bankers Investment.

Diversification Opportunities for Ametek and Bankers Investment

AmetekBankersDiversified AwayAmetekBankersDiversified Away100%
0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Ametek and Bankers is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment Trust and Ametek 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 Ametek Inc are associated (or correlated) with Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Ametek i.e., Ametek and Bankers Investment go up and down completely randomly.

Pair Corralation between Ametek and Bankers Investment

Assuming the 90 days trading horizon Ametek Inc is expected to under-perform the Bankers Investment. In addition to that, Ametek is 1.13 times more volatile than Bankers Investment Trust. It trades about -0.17 of its total potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.15 per unit of volatility. If you would invest  11,597  in Bankers Investment Trust on October 31, 2024 and sell it today you would earn a total of  563.00  from holding Bankers Investment Trust or generate 4.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy97.5%
ValuesDaily Returns

Ametek Inc  vs.  Bankers Investment Trust

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 051015
JavaScript chart by amCharts 3.21.150HF7 BNKR
       Timeline  
Ametek Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ametek Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ametek is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan175180185190195
Bankers Investment Trust 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Bankers Investment Trust are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bankers Investment may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan110112114116118120122124

Ametek and Bankers Investment Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.09-3.81-2.53-1.260.02241.342.694.035.38 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.150HF7 BNKR
       Returns  

Pair Trading with Ametek and Bankers Investment

The main advantage of trading using opposite Ametek and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek position performs unexpectedly, Bankers Investment 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.
The idea behind Ametek Inc and Bankers Investment Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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