Correlation Between American Public and AMPLITUDE SURGIC
Can any of the company-specific risk be diversified away by investing in both American Public and AMPLITUDE SURGIC 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 American Public and AMPLITUDE SURGIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Public Education and AMPLITUDE SURGIC EO, you can compare the effects of market volatilities on American Public and AMPLITUDE SURGIC 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 American Public with a short position of AMPLITUDE SURGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Public and AMPLITUDE SURGIC.
Diversification Opportunities for American Public and AMPLITUDE SURGIC
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and AMPLITUDE is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding American Public Education and AMPLITUDE SURGIC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPLITUDE SURGIC and American Public 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 American Public Education are associated (or correlated) with AMPLITUDE SURGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPLITUDE SURGIC has no effect on the direction of American Public i.e., American Public and AMPLITUDE SURGIC go up and down completely randomly.
Pair Corralation between American Public and AMPLITUDE SURGIC
Assuming the 90 days horizon American Public Education is expected to generate 1.65 times more return on investment than AMPLITUDE SURGIC. However, American Public is 1.65 times more volatile than AMPLITUDE SURGIC EO. It trades about 0.44 of its potential returns per unit of risk. AMPLITUDE SURGIC EO is currently generating about 0.13 per unit of risk. If you would invest 1,370 in American Public Education on September 5, 2024 and sell it today you would earn a total of 620.00 from holding American Public Education or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Public Education vs. AMPLITUDE SURGIC EO
Performance |
| Timeline |
| American Public Education |
| AMPLITUDE SURGIC |
American Public and AMPLITUDE SURGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Public and AMPLITUDE SURGIC
The main advantage of trading using opposite American Public and AMPLITUDE SURGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Public position performs unexpectedly, AMPLITUDE SURGIC 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 AMPLITUDE SURGIC will offset losses from the drop in AMPLITUDE SURGIC's long position.The idea behind American Public Education and AMPLITUDE SURGIC EO 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.| AMPLITUDE SURGIC vs. EEDUCATION ALBERT AB | AMPLITUDE SURGIC vs. CAREER EDUCATION | AMPLITUDE SURGIC vs. American Public Education | AMPLITUDE SURGIC vs. Mobilezone Holding AG |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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