Correlation Between Crossject and Amplitude Surgical

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

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

Diversification Opportunities for Crossject and Amplitude Surgical

-0.25

Correlation Coefficient

Crossject  Amplitude Surgical

Very good diversification

The 3 months correlation between Crossject and Amplitude is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Crossject 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 Crossject 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 Crossject 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 Crossject i.e., Crossject and Amplitude Surgical go up and down completely randomly.

Pair Corralation between Crossject and Amplitude Surgical

Assuming the 90 days trading horizon Crossject is expected to under-perform the Amplitude Surgical. In addition to that, Crossject is 1.49 times more volatile than Amplitude Surgical SAS. It trades about -0.04 of its total potential returns per unit of risk. Amplitude Surgical SAS is currently generating about 0.02 per unit of volatility. If you would invest  318.00  in Amplitude Surgical SAS on October 14, 2024 and sell it today you would earn a total of  2.00  from holding Amplitude Surgical SAS or generate 0.63% return on investment over 90 days.

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

Crossject  vs.  Amplitude Surgical SAS

Crossject

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crossject has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

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 Crossject and Amplitude Surgical

The main advantage of trading using opposite Crossject and Amplitude Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossject 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 Crossject 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.