Correlation Between SatixFy Communications and Amplitech

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

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

Diversification Opportunities for SatixFy Communications and Amplitech

0.52

Correlation Coefficient

SatixFy Communications  Amplitech

Very weak diversification

The 3 months correlation between SatixFy and Amplitech is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SatixFy Communications and Amplitech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitech Group and SatixFy Communications 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 SatixFy Communications 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 SatixFy Communications i.e., SatixFy Communications and Amplitech go up and down completely randomly.

Pair Corralation between SatixFy Communications and Amplitech

Given the investment horizon of 90 days SatixFy Communications is expected to generate 0.97 times more return on investment than Amplitech. However, SatixFy Communications is 1.03 times less risky than Amplitech. It trades about -0.04 of its potential returns per unit of risk. Amplitech Group is currently generating about -0.18 per unit of risk. If you would invest  200.00  in SatixFy Communications on December 30, 2024 and sell it today you would lose (72.00) from holding SatixFy Communications or give up 36.0% of portfolio value over 90 days.

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

SatixFy Communications  vs.  Amplitech Group

SatixFy Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days SatixFy Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company 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 SatixFy Communications and Amplitech

The main advantage of trading using opposite SatixFy Communications and Amplitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SatixFy Communications 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 SatixFy Communications 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.