Correlation Between AmpliTech and CAMP4 THERAPEUTICS

Can any of the company-specific risk be diversified away by investing in both AmpliTech and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AmpliTech Group and CAMP4 THERAPEUTICS PORATION, you can compare the effects of market volatilities on AmpliTech and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and CAMP4 THERAPEUTICS.

Diversification Opportunities for AmpliTech and CAMP4 THERAPEUTICS

-0.11

Correlation Coefficient

AmpliTech  CAMP4 THERAPEUTICS

Good diversification

The 3 months correlation between AmpliTech and CAMP4 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and CAMP4 THERAPEUTICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMP4 THERAPEUTICS has no effect on the direction of AmpliTech i.e., AmpliTech and CAMP4 THERAPEUTICS go up and down completely randomly.

Pair Corralation between AmpliTech and CAMP4 THERAPEUTICS

Assuming the 90 days horizon AmpliTech Group is expected to under-perform the CAMP4 THERAPEUTICS. In addition to that, AmpliTech is 1.49 times more volatile than CAMP4 THERAPEUTICS PORATION. It trades about -0.01 of its total potential returns per unit of risk. CAMP4 THERAPEUTICS PORATION is currently generating about 0.01 per unit of volatility. If you would invest  541.00  in CAMP4 THERAPEUTICS PORATION on December 29, 2024 and sell it today you would lose (112.00) from holding CAMP4 THERAPEUTICS PORATION or give up 20.7% of portfolio value over 90 days.

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

AmpliTech Group  vs.  CAMP4 THERAPEUTICS PORATION

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.

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAMP4 THERAPEUTICS PORATION are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent primary indicators, CAMP4 THERAPEUTICS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AmpliTech and CAMP4 THERAPEUTICS

The main advantage of trading using opposite AmpliTech and CAMP4 THERAPEUTICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS will offset losses from the drop in CAMP4 THERAPEUTICS's long position.

The idea behind AmpliTech Group and CAMP4 THERAPEUTICS PORATION 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.