Correlation Between AmTrust Financial and Mangazeya Mining

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

By analyzing existing cross correlation between AmTrust Financial Services and Mangazeya Mining, you can compare the effects of market volatilities on AmTrust Financial and Mangazeya Mining 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 AmTrust Financial with a short position of Mangazeya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and Mangazeya Mining.

Diversification Opportunities for AmTrust Financial and Mangazeya Mining

0.0

Correlation Coefficient

AmTrust Financial  Mangazeya Mining

Pay attention - limited upside

The 3 months correlation between AmTrust and Mangazeya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and Mangazeya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangazeya Mining and AmTrust Financial 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 AmTrust Financial Services are associated (or correlated) with Mangazeya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangazeya Mining has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and Mangazeya Mining go up and down completely randomly.

Pair Corralation between AmTrust Financial and Mangazeya Mining

If you would invest  1,370  in AmTrust Financial Services on September 22, 2024 and sell it today you would earn a total of  25.00  from holding AmTrust Financial Services or generate 1.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

AmTrust Financial Services  vs.  Mangazeya Mining

AmTrust Financial

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AmTrust Financial Services are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, AmTrust Financial is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Mangazeya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mangazeya Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mangazeya Mining is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AmTrust Financial and Mangazeya Mining

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

The idea behind AmTrust Financial Services and Mangazeya Mining 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 the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.