Correlation Between Ametek and Fastenal
Can any of the company-specific risk be diversified away by investing in both Ametek and Fastenal 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 Ametek and Fastenal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ametek Inc and Fastenal Company, you can compare the effects of market volatilities on Ametek and Fastenal 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 Ametek with a short position of Fastenal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ametek and Fastenal.
Diversification Opportunities for Ametek and Fastenal
Excellent diversification
The 3 months correlation between Ametek and Fastenal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Fastenal Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastenal and Ametek 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 Ametek Inc are associated (or correlated) with Fastenal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastenal has no effect on the direction of Ametek i.e., Ametek and Fastenal go up and down completely randomly.
Pair Corralation between Ametek and Fastenal
Considering the 90-day investment horizon Ametek Inc is expected to generate 0.95 times more return on investment than Fastenal. However, Ametek Inc is 1.05 times less risky than Fastenal. It trades about 0.06 of its potential returns per unit of risk. Fastenal Company is currently generating about -0.24 per unit of risk. If you would invest 18,643 in Ametek Inc on August 28, 2025 and sell it today you would earn a total of 879.00 from holding Ametek Inc or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ametek Inc vs. Fastenal Company
Performance |
| Timeline |
| Ametek Inc |
| Fastenal |
Ametek and Fastenal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ametek and Fastenal
The main advantage of trading using opposite Ametek and Fastenal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek position performs unexpectedly, Fastenal 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 Fastenal will offset losses from the drop in Fastenal's long position.| Ametek vs. Cyberfort Software | Ametek vs. Triumph Apparel | Ametek vs. Take Two Interactive Software | Ametek vs. Prism Software |
| Fastenal vs. Bebida Beverage Co | Fastenal vs. Infinite Technology Corp | Fastenal vs. Trip Technologies | Fastenal vs. Astral Foods Limited |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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