Correlation Between Amata Public and B GRIMM

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

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

Diversification Opportunities for Amata Public and B GRIMM

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Correlation Coefficient

Amata Public  B GRIMM

Pay attention - limited upside

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

Pair Corralation between Amata Public and B GRIMM

Assuming the 90 days trading horizon Amata Public is expected to generate 24.34 times more return on investment than B GRIMM. However, Amata Public is 24.34 times more volatile than B GRIMM POWER. It trades about 0.06 of its potential returns per unit of risk. B GRIMM POWER is currently generating about -0.05 per unit of risk. If you would invest  1,998  in Amata Public on October 10, 2024 and sell it today you would earn a total of  272.00  from holding Amata Public or generate 13.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.17%
Values	Daily Returns

Amata Public  vs.  B GRIMM POWER

Amata Public

Risk-Adjusted Performance

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Very Weak

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

B GRIMM POWER

Risk-Adjusted Performance

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Very Weak

Over the last 90 days B GRIMM POWER has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Amata Public and B GRIMM

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

The idea behind Amata Public and B GRIMM POWER 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.