Correlation Between Ames National and Currenc Group
Can any of the company-specific risk be diversified away by investing in both Ames National and Currenc 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 Ames National and Currenc Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ames National and Currenc Group Ordinary, you can compare the effects of market volatilities on Ames National and Currenc 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 Ames National with a short position of Currenc Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ames National and Currenc Group.
Diversification Opportunities for Ames National and Currenc Group
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ames and Currenc is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ames National and Currenc Group Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Currenc Group Ordinary and Ames National 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 Ames National are associated (or correlated) with Currenc Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Currenc Group Ordinary has no effect on the direction of Ames National i.e., Ames National and Currenc Group go up and down completely randomly.
Pair Corralation between Ames National and Currenc Group
Given the investment horizon of 90 days Ames National is expected to generate 7.42 times less return on investment than Currenc Group. But when comparing it to its historical volatility, Ames National is 6.55 times less risky than Currenc Group. It trades about 0.15 of its potential returns per unit of risk. Currenc Group Ordinary is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Currenc Group Ordinary on August 15, 2025 and sell it today you would earn a total of 168.00 from holding Currenc Group Ordinary or generate 98.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ames National vs. Currenc Group Ordinary
Performance |
| Timeline |
| Ames National |
| Currenc Group Ordinary |
Ames National and Currenc Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ames National and Currenc Group
The main advantage of trading using opposite Ames National and Currenc Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ames National position performs unexpectedly, Currenc 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 Currenc Group will offset losses from the drop in Currenc Group's long position.| Ames National vs. National Bankshares | Ames National vs. Mainstreet Bank | Ames National vs. Eagle Financial Services | Ames National vs. First Community |
| Currenc Group vs. Consumer Portfolio Services | Currenc Group vs. Open Lending Corp | Currenc Group vs. CPI Card Group | Currenc Group vs. Streamex Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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