Correlation Between AMCON Distributing and Complete Fin

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

By analyzing existing cross correlation between AMCON Distributing and Complete Fin Solu, you can compare the effects of market volatilities on AMCON Distributing and Complete Fin 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 AMCON Distributing with a short position of Complete Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and Complete Fin.

Diversification Opportunities for AMCON Distributing and Complete Fin

-0.16

Correlation Coefficient

AMCON Distributing  Complete Fin

Good diversification

The 3 months correlation between AMCON and Complete is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Complete Fin Solu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Complete Fin Solu and AMCON Distributing 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 AMCON Distributing are associated (or correlated) with Complete Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Complete Fin Solu has no effect on the direction of AMCON Distributing i.e., AMCON Distributing and Complete Fin go up and down completely randomly.

Pair Corralation between AMCON Distributing and Complete Fin

Considering the 90-day investment horizon AMCON Distributing is expected to generate 13.35 times less return on investment than Complete Fin. But when comparing it to its historical volatility, AMCON Distributing is 6.04 times less risky than Complete Fin. It trades about 0.02 of its potential returns per unit of risk. Complete Fin Solu is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  16.00  in Complete Fin Solu on May 28, 2025 and sell it today you would lose (6.00) from holding Complete Fin Solu or give up 37.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

AMCON Distributing  vs.  Complete Fin Solu

AMCON Distributing

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMCON Distributing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, AMCON Distributing is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Complete Fin Solu

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Complete Fin Solu are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Complete Fin unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMCON Distributing and Complete Fin

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

The idea behind AMCON Distributing and Complete Fin Solu 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.