Correlation Between GreenPro Capital and Ampco Pittsburgh

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

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

Diversification Opportunities for GreenPro Capital and Ampco Pittsburgh

0.2

Correlation Coefficient

GreenPro Capital  Ampco Pittsburgh

Modest diversification

The 3 months correlation between GreenPro and Ampco is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GreenPro Capital Corp and Ampco Pittsburgh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh and GreenPro Capital 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 GreenPro Capital Corp are associated (or correlated) with Ampco Pittsburgh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampco Pittsburgh has no effect on the direction of GreenPro Capital i.e., GreenPro Capital and Ampco Pittsburgh go up and down completely randomly.

Pair Corralation between GreenPro Capital and Ampco Pittsburgh

Given the investment horizon of 90 days GreenPro Capital is expected to generate 2.38 times less return on investment than Ampco Pittsburgh. In addition to that, GreenPro Capital is 1.7 times more volatile than Ampco Pittsburgh. It trades about 0.01 of its total potential returns per unit of risk. Ampco Pittsburgh is currently generating about 0.03 per unit of volatility. If you would invest  203.00  in Ampco Pittsburgh on December 26, 2024 and sell it today you would earn a total of  5.00  from holding Ampco Pittsburgh or generate 2.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

GreenPro Capital Corp  vs.  Ampco Pittsburgh

GreenPro Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days GreenPro Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GreenPro Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Ampco Pittsburgh

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ampco Pittsburgh are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Ampco Pittsburgh may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GreenPro Capital and Ampco Pittsburgh

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

The idea behind GreenPro Capital Corp and Ampco Pittsburgh 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.

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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.