Correlation Between AMPL and Blue Star

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

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

Diversification Opportunities for AMPL and Blue Star

-0.13

Correlation Coefficient

AMPL  Blue Star

Good diversification

The 3 months correlation between AMPL and Blue is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding AMPL and Blue Star Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Gold and AMPL 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 AMPL are associated (or correlated) with Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Gold has no effect on the direction of AMPL i.e., AMPL and Blue Star go up and down completely randomly.

Pair Corralation between AMPL and Blue Star

Assuming the 90 days trading horizon AMPL is expected to under-perform the Blue Star. But the crypto coin apears to be less risky and, when comparing its historical volatility, AMPL is 1.34 times less risky than Blue Star. The crypto coin trades about -0.01 of its potential returns per unit of risk. The Blue Star Gold is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3.25  in Blue Star Gold on December 30, 2024 and sell it today you would earn a total of  5.00  from holding Blue Star Gold or generate 153.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

AMPL  vs.  Blue Star Gold

AMPL

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMPL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AMPL is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Blue Star Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Star Gold are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Blue Star reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMPL and Blue Star

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

The idea behind AMPL and Blue Star Gold 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.