Correlation Between B GRIMM and Amata Public

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

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

Diversification Opportunities for B GRIMM and Amata Public

0.0

Correlation Coefficient

B GRIMM  Amata Public

Pay attention - limited upside

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

Pair Corralation between B GRIMM and Amata Public

If you would invest  2,270  in Amata Public on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Amata Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	80.0%
Values	Daily Returns

B GRIMM POWER  vs.  Amata Public

B GRIMM POWER

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days B GRIMM POWER has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Amata Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amata Public has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Amata Public is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with B GRIMM and Amata Public

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

The idea behind B GRIMM POWER and Amata Public 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.