Correlation Between Hillenbrand and Ampco Pittsburgh
Can any of the company-specific risk be diversified away by investing in both Hillenbrand and Ampco Pittsburgh 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 Hillenbrand and Ampco Pittsburgh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hillenbrand and Ampco Pittsburgh, you can compare the effects of market volatilities on Hillenbrand 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 Hillenbrand with a short position of Ampco Pittsburgh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hillenbrand and Ampco Pittsburgh.
Diversification Opportunities for Hillenbrand and Ampco Pittsburgh
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hillenbrand and Ampco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hillenbrand and Ampco Pittsburgh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampco Pittsburgh and Hillenbrand 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 Hillenbrand 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 Hillenbrand i.e., Hillenbrand and Ampco Pittsburgh go up and down completely randomly.
Pair Corralation between Hillenbrand and Ampco Pittsburgh
Allowing for the 90-day total investment horizon Hillenbrand is expected to generate 0.55 times more return on investment than Ampco Pittsburgh. However, Hillenbrand is 1.82 times less risky than Ampco Pittsburgh. It trades about 0.03 of its potential returns per unit of risk. Ampco Pittsburgh is currently generating about -0.03 per unit of risk. If you would invest 4,128 in Hillenbrand on January 25, 2024 and sell it today you would earn a total of 790.00 from holding Hillenbrand or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hillenbrand vs. Ampco Pittsburgh
Performance |
| Timeline |
| Hillenbrand |
| Ampco Pittsburgh |
Hillenbrand and Ampco Pittsburgh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hillenbrand and Ampco Pittsburgh
The main advantage of trading using opposite Hillenbrand and Ampco Pittsburgh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hillenbrand position performs unexpectedly, Ampco Pittsburgh 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 Ampco Pittsburgh will offset losses from the drop in Ampco Pittsburgh's long position.| Hillenbrand vs. Emerson Electric | Hillenbrand vs. Eaton PLC | Hillenbrand vs. Generac Holdings | Hillenbrand vs. Cummins |
| Ampco Pittsburgh vs. Northwest Pipe | Ampco Pittsburgh vs. Insteel Industries | Ampco Pittsburgh vs. ESAB Corp | Ampco Pittsburgh vs. Gulf Island Fabrication |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |