Correlation Between Actinogen Medical and AMP
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and AMP 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 Actinogen Medical and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and AMP, you can compare the effects of market volatilities on Actinogen Medical and AMP 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 Actinogen Medical with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and AMP.
Diversification Opportunities for Actinogen Medical and AMP
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Actinogen and AMP is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and AMP go up and down completely randomly.
Pair Corralation between Actinogen Medical and AMP
Assuming the 90 days trading horizon Actinogen Medical is expected to generate 3.67 times more return on investment than AMP. However, Actinogen Medical is 3.67 times more volatile than AMP. It trades about 0.21 of its potential returns per unit of risk. AMP is currently generating about 0.12 per unit of risk. If you would invest 2.30 in Actinogen Medical on September 14, 2024 and sell it today you would earn a total of 0.50 from holding Actinogen Medical or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. AMP
Performance |
| Timeline |
| Actinogen Medical |
| AMP |
Actinogen Medical and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and AMP
The main advantage of trading using opposite Actinogen Medical and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Actinogen Medical vs. My Foodie Box | Actinogen Medical vs. Dicker Data | Actinogen Medical vs. Dalaroo Metals | Actinogen Medical vs. Hutchison Telecommunications |
| AMP vs. IDP Education | AMP vs. Sonic Healthcare | AMP vs. Aussie Broadband | AMP vs. Healthco Healthcare and |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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