Correlation Between Amplify Lithium and HJEN

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

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

Diversification Opportunities for Amplify Lithium and HJEN

0.0

Correlation Coefficient

Amplify Lithium  HJEN

Pay attention - limited upside

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

Pair Corralation between Amplify Lithium and HJEN

If you would invest (100.00) in HJEN on December 29, 2024 and sell it today you would earn a total of  100.00  from holding HJEN or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amplify Lithium Battery  vs.  HJEN

Amplify Lithium Battery

Risk-Adjusted Performance

Very Weak

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

HJEN

Risk-Adjusted Performance

Very Weak

Over the last 90 days HJEN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, HJEN is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amplify Lithium and HJEN

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

The idea behind Amplify Lithium Battery and HJEN 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.