Correlation Between Parx Plastics and Amplitude Surgical
Can any of the company-specific risk be diversified away by investing in both Parx Plastics and Amplitude Surgical 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 Parx Plastics and Amplitude Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parx Plastics NV and Amplitude Surgical SAS, you can compare the effects of market volatilities on Parx Plastics and Amplitude Surgical 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 Parx Plastics with a short position of Amplitude Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parx Plastics and Amplitude Surgical.
Diversification Opportunities for Parx Plastics and Amplitude Surgical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Parx and Amplitude is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Parx Plastics NV and Amplitude Surgical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude Surgical SAS and Parx Plastics 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 Parx Plastics NV are associated (or correlated) with Amplitude Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude Surgical SAS has no effect on the direction of Parx Plastics i.e., Parx Plastics and Amplitude Surgical go up and down completely randomly.
Pair Corralation between Parx Plastics and Amplitude Surgical
Assuming the 90 days trading horizon Parx Plastics NV is expected to generate 0.56 times more return on investment than Amplitude Surgical. However, Parx Plastics NV is 1.78 times less risky than Amplitude Surgical. It trades about -0.21 of its potential returns per unit of risk. Amplitude Surgical SAS is currently generating about -0.18 per unit of risk. If you would invest 32.00 in Parx Plastics NV on September 25, 2024 and sell it today you would lose (2.00) from holding Parx Plastics NV or give up 6.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Parx Plastics NV vs. Amplitude Surgical SAS
Performance |
Timeline |
Parx Plastics NV |
Amplitude Surgical SAS |
Parx Plastics and Amplitude Surgical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Parx Plastics and Amplitude Surgical
The main advantage of trading using opposite Parx Plastics and Amplitude Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parx Plastics position performs unexpectedly, Amplitude Surgical 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 Amplitude Surgical will offset losses from the drop in Amplitude Surgical's long position.Parx Plastics vs. Amplitude Surgical SAS | Parx Plastics vs. Sensorion SA | Parx Plastics vs. Valbiotis SAS | Parx Plastics vs. Fiducial Office Solutions |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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