Correlation Between Amyris and Aemetis

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

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

Diversification Opportunities for Amyris and Aemetis

0.0

Correlation Coefficient

Amyris  Aemetis

Pay attention - limited upside

The 3 months correlation between Amyris and Aemetis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amyris Inc and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and Amyris 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 Amyris Inc are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of Amyris i.e., Amyris and Aemetis go up and down completely randomly.

Pair Corralation between Amyris and Aemetis

If you would invest  101.00  in Amyris Inc on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Amyris Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Amyris Inc  vs.  Aemetis

Amyris Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amyris Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amyris is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Aemetis

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aemetis are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Aemetis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Amyris and Aemetis

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

The idea behind Amyris Inc and Aemetis 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.

Check out your portfolio center.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.