Correlation Between Amplitech and Telesat Corp
Can any of the company-specific risk be diversified away by investing in both Amplitech and Telesat 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 Amplitech and Telesat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplitech Group and Telesat Corp, you can compare the effects of market volatilities on Amplitech and Telesat 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 Amplitech with a short position of Telesat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplitech and Telesat Corp.
Diversification Opportunities for Amplitech and Telesat Corp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplitech and Telesat is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amplitech Group and Telesat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telesat Corp 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 Telesat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telesat Corp has no effect on the direction of Amplitech i.e., Amplitech and Telesat Corp go up and down completely randomly.
Pair Corralation between Amplitech and Telesat Corp
Given the investment horizon of 90 days Amplitech Group is expected to generate 5.54 times more return on investment than Telesat Corp. However, Amplitech is 5.54 times more volatile than Telesat Corp. It trades about 0.05 of its potential returns per unit of risk. Telesat Corp is currently generating about 0.01 per unit of risk. If you would invest 247.00 in Amplitech Group on October 23, 2024 and sell it today you would lose (44.00) from holding Amplitech Group or give up 17.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplitech Group vs. Telesat Corp
Performance |
| Timeline |
| Amplitech Group |
| Telesat Corp |
Amplitech and Telesat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplitech and Telesat Corp
The main advantage of trading using opposite Amplitech and Telesat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplitech position performs unexpectedly, Telesat 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 Telesat Corp will offset losses from the drop in Telesat Corp's long position.| Amplitech vs. AmpliTech Group | Amplitech vs. AAC Technologies Holdings | Amplitech vs. Aerkomm | Amplitech vs. Airgain |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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