Correlation Between AmTrust Financial and Colas SA
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and Colas SA 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 AmTrust Financial and Colas SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmTrust Financial Services and Colas SA, you can compare the effects of market volatilities on AmTrust Financial and Colas SA 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 AmTrust Financial with a short position of Colas SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and Colas SA.
Diversification Opportunities for AmTrust Financial and Colas SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AmTrust and Colas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and Colas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colas SA and AmTrust Financial 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 AmTrust Financial Services are associated (or correlated) with Colas SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colas SA has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and Colas SA go up and down completely randomly.
Pair Corralation between AmTrust Financial and Colas SA
If you would invest (100.00) in AmTrust Financial Services on January 25, 2024 and sell it today you would earn a total of 100.00 from holding AmTrust Financial Services or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
AmTrust Financial Services vs. Colas SA
Performance |
Timeline |
AmTrust Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AmTrust Financial and Colas SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AmTrust Financial and Colas SA
The main advantage of trading using opposite AmTrust Financial and Colas SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, Colas SA 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 Colas SA will offset losses from the drop in Colas SA's long position.AmTrust Financial vs. Gulf Resources | AmTrust Financial vs. Griffon | AmTrust Financial vs. Yips Chemical Holdings | AmTrust Financial vs. The Mosaic |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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