Correlation Between Adocia and Amplitude Surgical

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

By analyzing existing cross correlation between Adocia and Amplitude Surgical SAS, you can compare the effects of market volatilities on Adocia and Amplitude Surgical 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 Adocia with a short position of Amplitude Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adocia and Amplitude Surgical.

Diversification Opportunities for Adocia and Amplitude Surgical

0.0

Correlation Coefficient

Adocia  Amplitude Surgical

Pay attention - limited upside

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

Pair Corralation between Adocia and Amplitude Surgical

Assuming the 90 days trading horizon Adocia is expected to generate 2.64 times more return on investment than Amplitude Surgical. However, Adocia is 2.64 times more volatile than Amplitude Surgical SAS. It trades about 0.04 of its potential returns per unit of risk. Amplitude Surgical SAS is currently generating about -0.01 per unit of risk. If you would invest  576.00  in Adocia on September 26, 2024 and sell it today you would earn a total of  22.00  from holding Adocia or generate 3.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Adocia  vs.  Amplitude Surgical SAS

Adocia

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Adocia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Adocia sustained solid returns over the last few months and may actually be approaching a breakup point.

Amplitude Surgical SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplitude Surgical SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Amplitude Surgical is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Adocia and Amplitude Surgical

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

The idea behind Adocia and Amplitude Surgical SAS 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.