Correlation Between Growth Fund and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Growth Fund and AmpliTech 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 Growth Fund and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and AmpliTech Group, you can compare the effects of market volatilities on Growth Fund and AmpliTech 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 Growth Fund with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and AmpliTech.
Diversification Opportunities for Growth Fund and AmpliTech
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Growth and AmpliTech is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Growth Fund 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 Growth Fund Of are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Growth Fund i.e., Growth Fund and AmpliTech go up and down completely randomly.
Pair Corralation between Growth Fund and AmpliTech
Assuming the 90 days horizon Growth Fund is expected to generate 242.64 times less return on investment than AmpliTech. But when comparing it to its historical volatility, Growth Fund Of is 43.44 times less risky than AmpliTech. It trades about 0.05 of its potential returns per unit of risk. AmpliTech Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3.20 in AmpliTech Group on November 3, 2024 and sell it today you would earn a total of 71.80 from holding AmpliTech Group or generate 2243.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. AmpliTech Group
Performance |
| Timeline |
| Growth Fund |
| AmpliTech Group |
Growth Fund and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and AmpliTech
The main advantage of trading using opposite Growth Fund and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| AmpliTech vs. Auddia Inc | AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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