This module allows you to analyze existing cross correlation between Newpark Resources and Ampco Pittsburgh Corporation. You can compare the effects of market volatilities on Newpark Resources 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 Newpark Resources with a short position of Ampco Pittsburgh. See also your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and Ampco Pittsburgh.
Allowing for the 30-days total investment horizon, Newpark Resources is expected to under-perform the Ampco Pittsburgh. But the stock apears to be less risky and, when comparing its historical volatility, Newpark Resources is 1.1 times less risky than Ampco Pittsburgh. The stock trades about -0.2 of its potential returns per unit of risk. The Ampco Pittsburgh Corporation is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Ampco Pittsburgh Corporation on June 23, 2018 and sell it today you would lose (65.00) from holding Ampco Pittsburgh Corporation or give up 6.19% of portfolio value over 30 days.
Pair Corralation between Newpark Resources and Ampco Pittsburgh
Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources Inc and Ampco Pittsburgh Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh and Newpark Resources 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 Newpark Resources 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 Newpark Resources i.e. Newpark Resources and Ampco Pittsburgh go up and down completely randomly.
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