Correlation Between SPACE and AMPL

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

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

Diversification Opportunities for SPACE and AMPL

0.3

Correlation Coefficient

SPACE  AMPL

Weak diversification

The 3 months correlation between SPACE and AMPL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and AMPL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPL and SPACE 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 SPACE are associated (or correlated) with AMPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPL has no effect on the direction of SPACE i.e., SPACE and AMPL go up and down completely randomly.

Pair Corralation between SPACE and AMPL

Assuming the 90 days horizon SPACE is expected to under-perform the AMPL. In addition to that, SPACE is 1.04 times more volatile than AMPL. It trades about -0.14 of its total potential returns per unit of risk. AMPL is currently generating about -0.01 per unit of volatility. If you would invest  113.00  in AMPL on December 31, 2024 and sell it today you would lose (17.00) from holding AMPL or give up 15.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SPACE  vs.  AMPL

SPACE

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPACE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for SPACE shareholders.

AMPL

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMPL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AMPL is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SPACE and AMPL

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

The idea behind SPACE and AMPL 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.