Correlation Between Ambarella and MPC Container

Can any of the company-specific risk be diversified away by investing in both Ambarella and MPC Container 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 Ambarella and MPC Container into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ambarella and MPC Container Ships, you can compare the effects of market volatilities on Ambarella and MPC Container 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 Ambarella with a short position of MPC Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambarella and MPC Container.

Diversification Opportunities for Ambarella and MPC Container

-0.25

Correlation Coefficient

Ambarella  MPC Container

Very good diversification

The 3 months correlation between Ambarella and MPC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ambarella and MPC Container Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Container Ships and Ambarella 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 Ambarella are associated (or correlated) with MPC Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Container Ships has no effect on the direction of Ambarella i.e., Ambarella and MPC Container go up and down completely randomly.

Pair Corralation between Ambarella and MPC Container

Given the investment horizon of 90 days Ambarella is expected to under-perform the MPC Container. In addition to that, Ambarella is 2.59 times more volatile than MPC Container Ships. It trades about 0.0 of its total potential returns per unit of risk. MPC Container Ships is currently generating about 0.06 per unit of volatility. If you would invest  1,769  in MPC Container Ships on September 10, 2025 and sell it today you would earn a total of  94.00  from holding MPC Container Ships or generate 5.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Ambarella  vs.  MPC Container Ships

Ambarella

Risk-Adjusted Performance

Weakest

Over the last 90 days Ambarella has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Ambarella is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MPC Container Ships

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MPC Container Ships are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, MPC Container is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ambarella and MPC Container

The main advantage of trading using opposite Ambarella and MPC Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambarella position performs unexpectedly, MPC Container 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 MPC Container will offset losses from the drop in MPC Container's long position.

The idea behind Ambarella and MPC Container Ships pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.