Correlation Between Ampco Pittsburgh and Barnes
Can any of the company-specific risk be diversified away by investing in both Ampco Pittsburgh and Barnes 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 Ampco Pittsburgh and Barnes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampco Pittsburgh and Barnes Group, you can compare the effects of market volatilities on Ampco Pittsburgh and Barnes 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 Ampco Pittsburgh with a short position of Barnes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and Barnes.
Diversification Opportunities for Ampco Pittsburgh and Barnes
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ampco and Barnes is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group and Ampco Pittsburgh 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 Ampco Pittsburgh are associated (or correlated) with Barnes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Group has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and Barnes go up and down completely randomly.
Pair Corralation between Ampco Pittsburgh and Barnes
Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to under-perform the Barnes. In addition to that, Ampco Pittsburgh is 1.04 times more volatile than Barnes Group. It trades about -0.08 of its total potential returns per unit of risk. Barnes Group is currently generating about 0.01 per unit of volatility. If you would invest 3,627 in Barnes Group on January 26, 2024 and sell it today you would lose (1.00) from holding Barnes Group or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ampco Pittsburgh vs. Barnes Group
Performance |
| Timeline |
| Ampco Pittsburgh |
| Barnes Group |
Ampco Pittsburgh and Barnes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampco Pittsburgh and Barnes
The main advantage of trading using opposite Ampco Pittsburgh and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, Barnes 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 Barnes will offset losses from the drop in Barnes' long position.| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. Carpenter Technology | Ampco Pittsburgh vs. ESAB Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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