Correlation Between Amprius Technologies and AMPX WT

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

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

Diversification Opportunities for Amprius Technologies and AMPX WT

-0.14

Correlation Coefficient

Amprius Technologies  AMPX WT

Good diversification

The 3 months correlation between Amprius and AMPX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies and AMPX WT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPX WT and Amprius Technologies 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 Amprius Technologies are associated (or correlated) with AMPX WT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPX WT has no effect on the direction of Amprius Technologies i.e., Amprius Technologies and AMPX WT go up and down completely randomly.

Pair Corralation between Amprius Technologies and AMPX WT

Given the investment horizon of 90 days Amprius Technologies is expected to generate 42.9 times less return on investment than AMPX WT. But when comparing it to its historical volatility, Amprius Technologies is 2.52 times less risky than AMPX WT. It trades about 0.02 of its potential returns per unit of risk. AMPX WT is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  25.00  in AMPX WT on October 9, 2024 and sell it today you would earn a total of  43.00  from holding AMPX WT or generate 172.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	8.1%
Values	Daily Returns

Amprius Technologies  vs.  AMPX WT

Amprius Technologies

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amprius Technologies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Amprius Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

AMPX WT

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in AMPX WT are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, AMPX WT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amprius Technologies and AMPX WT

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

The idea behind Amprius Technologies and AMPX WT 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.