Correlation Between American Transportation and Founder Group
Can any of the company-specific risk be diversified away by investing in both American Transportation and Founder Group 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 American Transportation and Founder Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Transportation Holdings and Founder Group Limited, you can compare the effects of market volatilities on American Transportation and Founder Group 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 American Transportation with a short position of Founder Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Transportation and Founder Group.
Diversification Opportunities for American Transportation and Founder Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Founder is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Transportation Holdin and Founder Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Founder Group Limited and American Transportation 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 American Transportation Holdings are associated (or correlated) with Founder Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Founder Group Limited has no effect on the direction of American Transportation i.e., American Transportation and Founder Group go up and down completely randomly.
Pair Corralation between American Transportation and Founder Group
If you would invest 1.00 in American Transportation Holdings on September 10, 2025 and sell it today you would earn a total of 0.00 from holding American Transportation Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Transportation Holdin vs. Founder Group Limited
Performance |
| Timeline |
| American Transportation |
| Founder Group Limited |
American Transportation and Founder Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Transportation and Founder Group
The main advantage of trading using opposite American Transportation and Founder Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Transportation position performs unexpectedly, Founder Group 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 Founder Group will offset losses from the drop in Founder Group's long position.The idea behind American Transportation Holdings and Founder Group Limited 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.| Founder Group vs. PROSHARES ULTRASHORT RUSSELL | Founder Group vs. FBS Global Limited | Founder Group vs. Galaxy Payroll Group | Founder Group vs. Antelope Enterprise Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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