Correlation Between Mosaic and AMREP

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

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

Diversification Opportunities for Mosaic and AMREP

-0.07

Correlation Coefficient

Mosaic  AMREP

Good diversification

The 3 months correlation between Mosaic and AMREP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Mosaic and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and Mosaic 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 The Mosaic are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of Mosaic i.e., Mosaic and AMREP go up and down completely randomly.

Pair Corralation between Mosaic and AMREP

Considering the 90-day investment horizon The Mosaic is expected to generate 0.65 times more return on investment than AMREP. However, The Mosaic is 1.54 times less risky than AMREP. It trades about -0.13 of its potential returns per unit of risk. AMREP is currently generating about -0.18 per unit of risk. If you would invest  2,583  in The Mosaic on September 23, 2024 and sell it today you would lose (176.00) from holding The Mosaic or give up 6.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Mosaic  vs.  AMREP

Mosaic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Mosaic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mosaic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

AMREP

Risk-Adjusted Performance

2 of 100

Weak

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

Pair Trading with Mosaic and AMREP

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

The idea behind The Mosaic and AMREP 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.