Correlation Between Amplify and Amplify

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

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

Diversification Opportunities for Amplify and Amplify

-0.07

Correlation Coefficient

Amplify  Amplify

Good diversification

The 3 months correlation between Amplify and Amplify is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amplify and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify and Amplify 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 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 i.e., Amplify and Amplify go up and down completely randomly.

Pair Corralation between Amplify and Amplify

Given the investment horizon of 90 days Amplify is expected to generate 0.28 times more return on investment than Amplify. However, Amplify is 3.61 times less risky than Amplify. It trades about -0.03 of its potential returns per unit of risk. Amplify is currently generating about -0.05 per unit of risk. If you would invest  2,396  in Amplify on October 24, 2024 and sell it today you would lose (146.00) from holding Amplify or give up 6.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	29.43%
Values	Daily Returns

Amplify  vs.  Amplify

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 fairly strong basic indicators, Amplify is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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. Even with relatively invariable technical and fundamental indicators, Amplify is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Amplify and Amplify

The main advantage of trading using opposite Amplify and Amplify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify 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 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.