Correlation Between Auden Techno and AMPACS Corp
Can any of the company-specific risk be diversified away by investing in both Auden Techno and AMPACS Corp 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 Auden Techno and AMPACS Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auden Techno and AMPACS Corp, you can compare the effects of market volatilities on Auden Techno and AMPACS Corp 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 Auden Techno with a short position of AMPACS Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auden Techno and AMPACS Corp.
Diversification Opportunities for Auden Techno and AMPACS Corp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Auden and AMPACS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Auden Techno and AMPACS Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPACS Corp and Auden Techno 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 Auden Techno are associated (or correlated) with AMPACS Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPACS Corp has no effect on the direction of Auden Techno i.e., Auden Techno and AMPACS Corp go up and down completely randomly.
Pair Corralation between Auden Techno and AMPACS Corp
Assuming the 90 days trading horizon Auden Techno is expected to generate 1.12 times more return on investment than AMPACS Corp. However, Auden Techno is 1.12 times more volatile than AMPACS Corp. It trades about 0.05 of its potential returns per unit of risk. AMPACS Corp is currently generating about -0.31 per unit of risk. If you would invest 10,750 in Auden Techno on September 13, 2024 and sell it today you would earn a total of 300.00 from holding Auden Techno or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auden Techno vs. AMPACS Corp
Performance |
| Timeline |
| Auden Techno |
| AMPACS Corp |
Auden Techno and AMPACS Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auden Techno and AMPACS Corp
The main advantage of trading using opposite Auden Techno and AMPACS Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auden Techno position performs unexpectedly, AMPACS Corp 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 AMPACS Corp will offset losses from the drop in AMPACS Corp's long position.| Auden Techno vs. CyberTAN Technology | Auden Techno vs. Merry Electronics Co | Auden Techno vs. Unizyx Holding Corp | Auden Techno vs. Microelectronics Technology |
| AMPACS Corp vs. Auden Techno | AMPACS Corp vs. VIA Labs | AMPACS Corp vs. Orient Semiconductor Electronics | AMPACS Corp vs. AP Memory Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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