Correlation Between Cyclo Therapeutics and AmpliTech

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

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

Diversification Opportunities for Cyclo Therapeutics and AmpliTech

0.18

Correlation Coefficient

Cyclo Therapeutics  AmpliTech

Average diversification

The 3 months correlation between Cyclo and AmpliTech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cyclo Therapeutics and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Cyclo 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 Cyclo Therapeutics 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 Cyclo Therapeutics i.e., Cyclo Therapeutics and AmpliTech go up and down completely randomly.

Pair Corralation between Cyclo Therapeutics and AmpliTech

Assuming the 90 days horizon Cyclo Therapeutics is expected to under-perform the AmpliTech. In addition to that, Cyclo Therapeutics is 1.13 times more volatile than AmpliTech Group. It trades about -0.04 of its total potential returns per unit of risk. AmpliTech Group is currently generating about -0.01 per unit of volatility. If you would invest  99.00  in AmpliTech Group on December 30, 2024 and sell it today you would lose (52.00) from holding AmpliTech Group or give up 52.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Cyclo Therapeutics  vs.  AmpliTech Group

Cyclo Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cyclo Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

AmpliTech Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days AmpliTech Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Cyclo Therapeutics and AmpliTech

The main advantage of trading using opposite Cyclo Therapeutics and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclo 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 Cyclo Therapeutics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.