Correlation Between Ampleforth and AC Milan

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ampleforth and AC Milan 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 Ampleforth and AC Milan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampleforth and AC Milan Fan, you can compare the effects of market volatilities on Ampleforth and AC Milan 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 Ampleforth with a short position of AC Milan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampleforth and AC Milan.

Diversification Opportunities for Ampleforth and AC Milan

0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ampleforth and AC Milan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth and AC Milan Fan Token in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AC Milan Fan and Ampleforth 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 Ampleforth are associated (or correlated) with AC Milan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Milan Fan has no effect on the direction of Ampleforth i.e., Ampleforth and AC Milan go up and down completely randomly.

Pair Corralation between Ampleforth and AC Milan

Assuming the 90 days trading horizon Ampleforth is expected to under-perform the AC Milan. But the crypto coin apears to be less risky and, when comparing its historical volatility, Ampleforth is 3.43 times less risky than AC Milan. The crypto coin trades about -0.21 of its potential returns per unit of risk. The AC Milan Fan is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  605.00  in AC Milan Fan on February 16, 2022 and sell it today you would lose (231.00)  from holding AC Milan Fan or give up 38.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ampleforth  vs.  AC Milan Fan Token

 Performance (%) 
      Timeline 
Ampleforth 
Ampleforth Performance
0 of 100
Over the last 90 days Ampleforth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ampleforth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ampleforth Price Channel

AC Milan Fan 
AC Milan Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in AC Milan Fan are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, AC Milan sustained solid returns over the last few months and may actually be approaching a breakup point.

AC Milan Price Channel

Ampleforth and AC Milan Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ampleforth and AC Milan

The main advantage of trading using opposite Ampleforth and AC Milan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth position performs unexpectedly, AC Milan 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 AC Milan will offset losses from the drop in AC Milan's long position.
The idea behind Ampleforth and AC Milan Fan 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go