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
Newpark Resources Inc vs Ampco Pittsburgh Corp.
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 1.8 times less risky than Ampco Pittsburgh. The stock trades about -0.19 of its potential returns per unit of risk. The Ampco Pittsburgh Corporation is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,355 in Ampco Pittsburgh Corporation on November 17, 2017 and sell it today you would lose (75) from holding Ampco Pittsburgh Corporation or give up 5.54% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak 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.
Over the last 30 days Newpark Resources Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Ampco Pittsburgh Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.