Correlation Between Armada Hflr and Amplitude Surgical

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

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

Diversification Opportunities for Armada Hflr and Amplitude Surgical

0.27

Correlation Coefficient

Armada Hflr  Amplitude Surgical

Modest diversification

The 3 months correlation between Armada and Amplitude is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Amplitude Surgical go up and down completely randomly.

Pair Corralation between Armada Hflr and Amplitude Surgical

Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Amplitude Surgical. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.09 times less risky than Amplitude Surgical. The stock trades about 0.0 of its potential returns per unit of risk. The Amplitude Surgical SAS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  320.00  in Amplitude Surgical SAS on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Amplitude Surgical SAS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Armada Hflr Pr  vs.  Amplitude Surgical SAS

Armada Hflr Pr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Armada Hflr Pr has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Amplitude Surgical SAS

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with Armada Hflr and Amplitude Surgical

The main advantage of trading using opposite Armada Hflr and Amplitude Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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 Armada Hflr Pr 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.