Correlation Between Amplify and Amplify Samsung

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

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

Diversification Opportunities for Amplify and Amplify Samsung

0.0

Correlation Coefficient

Amplify  Amplify Samsung

Pay attention - limited upside

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

Pair Corralation between Amplify and Amplify Samsung

If you would invest  10,061  in Amplify Samsung SOFR on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Amplify Samsung SOFR or generate 0.0% return on investment over 90 days.

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

Amplify  vs.  Amplify Samsung SOFR

Amplify

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amplify is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Amplify Samsung SOFR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify Samsung SOFR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amplify Samsung is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amplify and Amplify Samsung

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

The idea behind Amplify and Amplify Samsung SOFR 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.