Pair Correlation Between Newpark Resources and Ampco Pittsburgh

This module allows you to analyze existing cross correlation between Newpark Resources Inc 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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Newpark Resources Inc  vs   Ampco Pittsburgh Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Newpark Resources Inc is expected to under-perform the Ampco Pittsburgh. But the stock apears to be less risky and, when comparing its historical volatility, Newpark Resources Inc is 1.34 times less risky than Ampco Pittsburgh. The stock trades about -0.04 of its potential returns per unit of risk. The Ampco Pittsburgh Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,725  in Ampco Pittsburgh Corporation on September 22, 2017 and sell it today you would earn a total of  100  from holding Ampco Pittsburgh Corporation or generate 5.8% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Newpark Resources and Ampco Pittsburgh
0.19

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

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 Inc 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Newpark Resources Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Newpark Resources Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Ampco Pittsburgh

  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ampco Pittsburgh Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.