Correlation Between Ampco Pittsburgh and Mingteng International

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

By analyzing existing cross correlation between Ampco Pittsburgh and Mingteng International, you can compare the effects of market volatilities on Ampco Pittsburgh and Mingteng International 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 Ampco Pittsburgh with a short position of Mingteng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Mingteng International.

Diversification Opportunities for Ampco Pittsburgh and Mingteng International

-0.15

Correlation Coefficient

Ampco Pittsburgh  Mingteng International

Good diversification

The 3 months correlation between Ampco and Mingteng is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Mingteng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingteng International and Ampco Pittsburgh 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 Ampco Pittsburgh are associated (or correlated) with Mingteng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingteng International has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Mingteng International go up and down completely randomly.

Pair Corralation between Ampco Pittsburgh and Mingteng International

Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 23.37 times less return on investment than Mingteng International. But when comparing it to its historical volatility, Ampco Pittsburgh is 1.44 times less risky than Mingteng International. It trades about 0.0 of its potential returns per unit of risk. Mingteng International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  350.00  in Mingteng International on September 12, 2024 and sell it today you would earn a total of  240.00  from holding Mingteng International or generate 68.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	49.85%
Values	Daily Returns

Ampco Pittsburgh  vs.  Mingteng International

Ampco Pittsburgh

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ampco Pittsburgh are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Ampco Pittsburgh reported solid returns over the last few months and may actually be approaching a breakup point.

Mingteng International

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mingteng International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Mingteng International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ampco Pittsburgh and Mingteng International

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

The idea behind Ampco Pittsburgh and Mingteng International 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.