Correlation Between First Physicians and Amplify Online

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

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

Diversification Opportunities for First Physicians and Amplify Online

0.0

Correlation Coefficient

First Physicians  Amplify Online

Pay attention - limited upside

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

Pair Corralation between First Physicians and Amplify Online

If you would invest  6,596  in Amplify Online Retail on October 22, 2024 and sell it today you would earn a total of  47.00  from holding Amplify Online Retail or generate 0.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.0%
Values	Daily Returns

First Physicians Capital  vs.  Amplify Online Retail

First Physicians Capital

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amplify Online Retail

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Online Retail are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Amplify Online may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with First Physicians and Amplify Online

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

The idea behind First Physicians Capital and Amplify Online Retail 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.