Correlation Between Auddia and AmpliTech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Auddia and AmpliTech 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 Auddia and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auddia Inc and AmpliTech Group, you can compare the effects of market volatilities on Auddia and AmpliTech 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 Auddia with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auddia and AmpliTech.

Diversification Opportunities for Auddia and AmpliTech

-0.47
  Correlation Coefficient

Very good diversification

The 3 months correlation between Auddia and AmpliTech is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Auddia Inc and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Auddia 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 Auddia Inc are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Auddia i.e., Auddia and AmpliTech go up and down completely randomly.

Pair Corralation between Auddia and AmpliTech

Assuming the 90 days horizon Auddia Inc is expected to generate 5.61 times more return on investment than AmpliTech. However, Auddia is 5.61 times more volatile than AmpliTech Group. It trades about 0.2 of its potential returns per unit of risk. AmpliTech Group is currently generating about 0.17 per unit of risk. If you would invest  5.00  in Auddia Inc on October 20, 2024 and sell it today you would lose (1.57) from holding Auddia Inc or give up 31.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy71.43%
ValuesDaily Returns

Auddia Inc  vs.  AmpliTech Group

 Performance 
       Timeline  
Auddia Inc 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Auddia Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Auddia showed solid returns over the last few months and may actually be approaching a breakup point.
AmpliTech Group 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in AmpliTech Group are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, AmpliTech showed solid returns over the last few months and may actually be approaching a breakup point.

Auddia and AmpliTech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Auddia and AmpliTech

The main advantage of trading using opposite Auddia and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auddia position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.
The idea behind Auddia Inc and AmpliTech Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Technical Analysis
Check basic technical indicators and analysis based on most latest market data