Correlation Between AmTrust Financial and CROWN

Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and CROWN 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 AmTrust Financial and CROWN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AmTrust Financial Services and CROWN CASTLE INTL, you can compare the effects of market volatilities on AmTrust Financial and CROWN 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 AmTrust Financial with a short position of CROWN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and CROWN.

Diversification Opportunities for AmTrust Financial and CROWN

-0.11

Correlation Coefficient

AmTrust Financial  CROWN

Good diversification

The 3 months correlation between AmTrust and CROWN is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and CROWN CASTLE INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CROWN CASTLE INTL and AmTrust Financial 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 AmTrust Financial Services are associated (or correlated) with CROWN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CROWN CASTLE INTL has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and CROWN go up and down completely randomly.

Pair Corralation between AmTrust Financial and CROWN

Assuming the 90 days horizon AmTrust Financial Services is expected to generate 14.45 times more return on investment than CROWN. However, AmTrust Financial is 14.45 times more volatile than CROWN CASTLE INTL. It trades about 0.06 of its potential returns per unit of risk. CROWN CASTLE INTL is currently generating about 0.05 per unit of risk. If you would invest  1,340  in AmTrust Financial Services on December 24, 2024 and sell it today you would earn a total of  75.00  from holding AmTrust Financial Services or generate 5.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

AmTrust Financial Services  vs.  CROWN CASTLE INTL

AmTrust Financial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AmTrust Financial Services are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating forward indicators, AmTrust Financial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CROWN CASTLE INTL

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CROWN CASTLE INTL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CROWN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AmTrust Financial and CROWN

The main advantage of trading using opposite AmTrust Financial and CROWN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, CROWN 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 CROWN will offset losses from the drop in CROWN's long position.

The idea behind AmTrust Financial Services and CROWN CASTLE INTL 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.