Correlation Between Colas SA and AmTrust Financial
Can any of the company-specific risk be diversified away by investing in both Colas SA and AmTrust Financial 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 Colas SA and AmTrust Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and AmTrust Financial Services, you can compare the effects of market volatilities on Colas SA and AmTrust Financial 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 Colas SA with a short position of AmTrust Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and AmTrust Financial.
Diversification Opportunities for Colas SA and AmTrust Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Colas and AmTrust is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and AmTrust Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmTrust Financial and Colas SA 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 Colas SA are associated (or correlated) with AmTrust Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmTrust Financial has no effect on the direction of Colas SA i.e., Colas SA and AmTrust Financial go up and down completely randomly.
Pair Corralation between Colas SA and AmTrust Financial
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 |
Colas SA vs. AmTrust Financial Services
Performance |
| Timeline |
| Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AmTrust Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Colas SA and AmTrust Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colas SA and AmTrust Financial
The main advantage of trading using opposite Colas SA and AmTrust Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, AmTrust Financial 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 AmTrust Financial will offset losses from the drop in AmTrust Financial's long position.| Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. Brookfield Reinsurance | Colas SA vs. RenaissanceRe Holdings |
| AmTrust Financial vs. LithiumBank Resources Corp | AmTrust Financial vs. ServiceNow | AmTrust Financial vs. Mill City Ventures | AmTrust Financial vs. Q2 Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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