Correlation Between CAMP4 THERAPEUTICS and AmpliTech

Can any of the company-specific risk be diversified away by investing in both CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CAMP4 THERAPEUTICS PORATION and AmpliTech Group, you can compare the effects of market volatilities on CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAMP4 THERAPEUTICS and AmpliTech.

Diversification Opportunities for CAMP4 THERAPEUTICS and AmpliTech

-0.61

Correlation Coefficient

CAMP4 THERAPEUTICS  AmpliTech

Excellent diversification

The 3 months correlation between CAMP4 and AmpliTech is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding CAMP4 THERAPEUTICS PORATION and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS PORATION 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 CAMP4 THERAPEUTICS i.e., CAMP4 THERAPEUTICS and AmpliTech go up and down completely randomly.

Pair Corralation between CAMP4 THERAPEUTICS and AmpliTech

Given the investment horizon of 90 days CAMP4 THERAPEUTICS PORATION is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, CAMP4 THERAPEUTICS PORATION is 3.99 times less risky than AmpliTech. The stock trades about -0.2 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5.10  in AmpliTech Group on September 5, 2024 and sell it today you would lose (1.90) from holding AmpliTech Group or give up 37.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	60.32%
Values	Daily Returns

CAMP4 THERAPEUTICS PORATION  vs.  AmpliTech Group

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CAMP4 THERAPEUTICS PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

AmpliTech Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AmpliTech Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, AmpliTech showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CAMP4 THERAPEUTICS and AmpliTech

The main advantage of trading using opposite CAMP4 THERAPEUTICS and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS PORATION 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.

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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.