Correlation Between Amplitech and Cyclo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Amplitech and Cyclo Therapeutics 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 Amplitech and Cyclo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplitech Group and Cyclo Therapeutics, you can compare the effects of market volatilities on Amplitech and Cyclo Therapeutics 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 Amplitech with a short position of Cyclo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplitech and Cyclo Therapeutics.
Diversification Opportunities for Amplitech and Cyclo Therapeutics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplitech and Cyclo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amplitech Group and Cyclo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyclo Therapeutics and Amplitech 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 Amplitech Group are associated (or correlated) with Cyclo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyclo Therapeutics has no effect on the direction of Amplitech i.e., Amplitech and Cyclo Therapeutics go up and down completely randomly.
Pair Corralation between Amplitech and Cyclo Therapeutics
Given the investment horizon of 90 days Amplitech is expected to generate 14.16 times less return on investment than Cyclo Therapeutics. But when comparing it to its historical volatility, Amplitech Group is 2.09 times less risky than Cyclo Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Cyclo Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cyclo Therapeutics on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Cyclo Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplitech Group vs. Cyclo Therapeutics
Performance |
| Timeline |
| Amplitech Group |
| Cyclo Therapeutics |
Amplitech and Cyclo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplitech and Cyclo Therapeutics
The main advantage of trading using opposite Amplitech and Cyclo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplitech position performs unexpectedly, Cyclo Therapeutics 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 Cyclo Therapeutics will offset losses from the drop in Cyclo Therapeutics' long position.| Amplitech vs. AmpliTech Group | Amplitech vs. AAC Technologies Holdings | Amplitech vs. Aerkomm | Amplitech vs. Airgain |
| Cyclo Therapeutics vs. Eliem Therapeutics | Cyclo Therapeutics vs. HCW Biologics | Cyclo Therapeutics vs. Scpharmaceuticals | Cyclo Therapeutics vs. Milestone Pharmaceuticals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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