Correlation Between AMPLITUDE SURGIC and SENECA FOODS
Can any of the company-specific risk be diversified away by investing in both AMPLITUDE SURGIC and SENECA FOODS 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 AMPLITUDE SURGIC and SENECA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPLITUDE SURGIC EO and SENECA FOODS A, you can compare the effects of market volatilities on AMPLITUDE SURGIC and SENECA FOODS 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 AMPLITUDE SURGIC with a short position of SENECA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPLITUDE SURGIC and SENECA FOODS.
Diversification Opportunities for AMPLITUDE SURGIC and SENECA FOODS
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMPLITUDE and SENECA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AMPLITUDE SURGIC EO and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A and AMPLITUDE SURGIC 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 AMPLITUDE SURGIC EO are associated (or correlated) with SENECA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of AMPLITUDE SURGIC i.e., AMPLITUDE SURGIC and SENECA FOODS go up and down completely randomly.
Pair Corralation between AMPLITUDE SURGIC and SENECA FOODS
Assuming the 90 days horizon AMPLITUDE SURGIC is expected to generate 4.71 times less return on investment than SENECA FOODS. But when comparing it to its historical volatility, AMPLITUDE SURGIC EO is 1.65 times less risky than SENECA FOODS. It trades about 0.01 of its potential returns per unit of risk. SENECA FOODS A is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,500 in SENECA FOODS A on September 14, 2024 and sell it today you would earn a total of 1,300 from holding SENECA FOODS A or generate 23.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMPLITUDE SURGIC EO vs. SENECA FOODS A
Performance |
| Timeline |
| AMPLITUDE SURGIC |
| SENECA FOODS A |
AMPLITUDE SURGIC and SENECA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPLITUDE SURGIC and SENECA FOODS
The main advantage of trading using opposite AMPLITUDE SURGIC and SENECA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPLITUDE SURGIC position performs unexpectedly, SENECA FOODS 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 SENECA FOODS will offset losses from the drop in SENECA FOODS's long position.| AMPLITUDE SURGIC vs. SENECA FOODS A | AMPLITUDE SURGIC vs. Southwest Airlines Co | AMPLITUDE SURGIC vs. CN MODERN DAIRY | AMPLITUDE SURGIC vs. Tyson Foods |
| SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc | SENECA FOODS vs. Apple Inc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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