Correlation Between AMPL and Rupert Resources

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

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

Diversification Opportunities for AMPL and Rupert Resources

-0.09

Correlation Coefficient

AMPL  Rupert Resources

Good diversification

The 3 months correlation between AMPL and Rupert is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AMPL and Rupert Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rupert Resources 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 Rupert Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rupert Resources has no effect on the direction of AMPL i.e., AMPL and Rupert Resources go up and down completely randomly.

Pair Corralation between AMPL and Rupert Resources

Assuming the 90 days trading horizon AMPL is expected to generate 14.17 times less return on investment than Rupert Resources. In addition to that, AMPL is 2.64 times more volatile than Rupert Resources. It trades about 0.0 of its total potential returns per unit of risk. Rupert Resources is currently generating about 0.09 per unit of volatility. If you would invest  283.00  in Rupert Resources on December 1, 2024 and sell it today you would earn a total of  39.00  from holding Rupert Resources or generate 13.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

AMPL  vs.  Rupert Resources

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.

Rupert Resources

Risk-Adjusted Performance

OK

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

Pair Trading with AMPL and Rupert Resources

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

The idea behind AMPL and Rupert Resources 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.