Correlation Between Amplitech and Airgain

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

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

Diversification Opportunities for Amplitech and Airgain

0.42

Correlation Coefficient

Amplitech  Airgain

Very weak diversification

The 3 months correlation between Amplitech and Airgain is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amplitech Group and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and Amplitech 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 Amplitech Group are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Amplitech i.e., Amplitech and Airgain go up and down completely randomly.

Pair Corralation between Amplitech and Airgain

Given the investment horizon of 90 days Amplitech Group is expected to generate 2.87 times more return on investment than Airgain. However, Amplitech is 2.87 times more volatile than Airgain. It trades about 0.06 of its potential returns per unit of risk. Airgain is currently generating about 0.1 per unit of risk. If you would invest  78.00  in Amplitech Group on September 5, 2024 and sell it today you would earn a total of  11.00  from holding Amplitech Group or generate 14.1% return on investment over 90 days.

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

Amplitech Group  vs.  Airgain

Amplitech Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amplitech Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Amplitech reported solid returns over the last few months and may actually be approaching a breakup point.

Airgain

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Airgain are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Airgain reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amplitech and Airgain

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

The idea behind Amplitech Group and Airgain 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.