Correlation Between Ampco Pittsburgh and T Rowe

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

By analyzing existing cross correlation between Ampco Pittsburgh and T Rowe Price, you can compare the effects of market volatilities on Ampco Pittsburgh and T Rowe 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 T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampco Pittsburgh and T Rowe.

Diversification Opportunities for Ampco Pittsburgh and T Rowe

0.79

Correlation Coefficient

Ampco Pittsburgh  T Rowe

Poor diversification

The 3 months correlation between Ampco and RPGIX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ampco Pittsburgh and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price 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 T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Ampco Pittsburgh i.e., Ampco Pittsburgh and T Rowe go up and down completely randomly.

Pair Corralation between Ampco Pittsburgh and T Rowe

Allowing for the 90-day total investment horizon Ampco Pittsburgh is expected to generate 6.22 times more return on investment than T Rowe. However, Ampco Pittsburgh is 6.22 times more volatile than T Rowe Price. It trades about 0.18 of its potential returns per unit of risk. T Rowe Price is currently generating about 0.28 per unit of risk. If you would invest  201.00  in Ampco Pittsburgh on May 1, 2025 and sell it today you would earn a total of  159.00  from holding Ampco Pittsburgh or generate 79.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ampco Pittsburgh  vs.  T Rowe Price

Ampco Pittsburgh

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ampco Pittsburgh are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Ampco Pittsburgh reported solid returns over the last few months and may actually be approaching a breakup point.

T Rowe Price

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, T Rowe showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ampco Pittsburgh and T Rowe

The main advantage of trading using opposite Ampco Pittsburgh and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampco Pittsburgh position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind Ampco Pittsburgh and T Rowe Price 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..