Correlation Between Amplify Samsung and Amplify

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

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

Diversification Opportunities for Amplify Samsung and Amplify

0.14

Correlation Coefficient

Amplify Samsung  Amplify

Average diversification

The 3 months correlation between Amplify and Amplify is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Samsung SOFR and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify and Amplify Samsung 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 Amplify Samsung SOFR are associated (or correlated) with Amplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify has no effect on the direction of Amplify Samsung i.e., Amplify Samsung and Amplify go up and down completely randomly.

Pair Corralation between Amplify Samsung and Amplify

Considering the 90-day investment horizon Amplify Samsung SOFR is expected to generate 0.02 times more return on investment than Amplify. However, Amplify Samsung SOFR is 55.72 times less risky than Amplify. It trades about 0.84 of its potential returns per unit of risk. Amplify is currently generating about -0.01 per unit of risk. If you would invest  9,611  in Amplify Samsung SOFR on October 24, 2024 and sell it today you would earn a total of  450.00  from holding Amplify Samsung SOFR or generate 4.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	68.24%
Values	Daily Returns

Amplify Samsung SOFR  vs.  Amplify

Amplify Samsung SOFR

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amplify

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amplify is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amplify Samsung and Amplify

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

The idea behind Amplify Samsung SOFR and Amplify 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.