Correlation Between Amtran Technology and United Renewable
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and United Renewable 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 Amtran Technology and United Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtran Technology Co and United Renewable Energy, you can compare the effects of market volatilities on Amtran Technology and United Renewable 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 Amtran Technology with a short position of United Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and United Renewable.
Diversification Opportunities for Amtran Technology and United Renewable
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amtran and United is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and United Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Renewable Energy and Amtran Technology 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 Amtran Technology Co are associated (or correlated) with United Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Renewable Energy has no effect on the direction of Amtran Technology i.e., Amtran Technology and United Renewable go up and down completely randomly.
Pair Corralation between Amtran Technology and United Renewable
Assuming the 90 days trading horizon Amtran Technology Co is expected to generate 1.05 times more return on investment than United Renewable. However, Amtran Technology is 1.05 times more volatile than United Renewable Energy. It trades about -0.08 of its potential returns per unit of risk. United Renewable Energy is currently generating about -0.09 per unit of risk. If you would invest 2,139 in Amtran Technology Co on September 13, 2024 and sell it today you would lose (229.00) from holding Amtran Technology Co or give up 10.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Amtran Technology Co vs. United Renewable Energy
Performance |
Timeline |
Amtran Technology |
United Renewable Energy |
Amtran Technology and United Renewable Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amtran Technology and United Renewable
The main advantage of trading using opposite Amtran Technology and United Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, United Renewable 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 United Renewable will offset losses from the drop in United Renewable's long position.Amtran Technology vs. Feng Tay Enterprises | Amtran Technology vs. Ruentex Development Co | Amtran Technology vs. WiseChip Semiconductor | Amtran Technology vs. Novatek Microelectronics Corp |
United Renewable vs. Motech Industries Co | United Renewable vs. Innolux Corp | United Renewable vs. Gigastorage Corp | United Renewable vs. Darwin Precisions 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |