Correlation Between Mobilicom Limited and Amplitech

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

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

Diversification Opportunities for Mobilicom Limited and Amplitech

-0.16

Correlation Coefficient

Mobilicom Limited  Amplitech

Good diversification

The 3 months correlation between Mobilicom and Amplitech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mobilicom Limited Warrants and Amplitech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitech Group and Mobilicom Limited 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 Mobilicom Limited Warrants 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 Mobilicom Limited i.e., Mobilicom Limited and Amplitech go up and down completely randomly.

Pair Corralation between Mobilicom Limited and Amplitech

Assuming the 90 days horizon Mobilicom Limited Warrants is expected to generate 1.85 times more return on investment than Amplitech. However, Mobilicom Limited is 1.85 times more volatile than Amplitech Group. It trades about -0.02 of its potential returns per unit of risk. Amplitech Group is currently generating about -0.18 per unit of risk. If you would invest  70.00  in Mobilicom Limited Warrants on December 30, 2024 and sell it today you would lose (36.00) from holding Mobilicom Limited Warrants or give up 51.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.97%
Values	Daily Returns

Mobilicom Limited Warrants  vs.  Amplitech Group

Mobilicom Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobilicom Limited Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers 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. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Mobilicom Limited and Amplitech

The main advantage of trading using opposite Mobilicom Limited and Amplitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilicom Limited 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 Mobilicom Limited Warrants 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.