Correlation Between AmpliTech and Cemtrex

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

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

Diversification Opportunities for AmpliTech and Cemtrex

0.61

Correlation Coefficient

AmpliTech  Cemtrex

Poor diversification

The 3 months correlation between AmpliTech and Cemtrex is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Cemtrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtrex 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 Cemtrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtrex has no effect on the direction of AmpliTech i.e., AmpliTech and Cemtrex go up and down completely randomly.

Pair Corralation between AmpliTech and Cemtrex

Assuming the 90 days horizon AmpliTech Group is expected to generate 3.33 times more return on investment than Cemtrex. However, AmpliTech is 3.33 times more volatile than Cemtrex. It trades about -0.01 of its potential returns per unit of risk. Cemtrex is currently generating about -0.23 per unit of risk. 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

AmpliTech Group  vs.  Cemtrex

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.

Cemtrex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cemtrex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AmpliTech and Cemtrex

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

The idea behind AmpliTech Group and Cemtrex 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.