Correlation Between Airgain and AmpliTech

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

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

Diversification Opportunities for Airgain and AmpliTech

0.64

Correlation Coefficient

Airgain  AmpliTech

Poor diversification

The 3 months correlation between Airgain and AmpliTech is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Airgain and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Airgain 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 Airgain are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Airgain i.e., Airgain and AmpliTech go up and down completely randomly.

Pair Corralation between Airgain and AmpliTech

Given the investment horizon of 90 days Airgain is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Airgain is 3.39 times less risky than AmpliTech. The stock trades about -0.19 of its potential returns per unit of risk. The AmpliTech Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  99.00  in AmpliTech Group on December 30, 2024 and sell it today you would lose (52.00) from holding AmpliTech Group or give up 52.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Airgain  vs.  AmpliTech Group

Airgain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airgain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AmpliTech Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days AmpliTech Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Airgain and AmpliTech

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

The idea behind Airgain and AmpliTech Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.