Correlation Between AmpliTech and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both AmpliTech and AAC Technologies 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 AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and AAC Technologies Holdings, you can compare the effects of market volatilities on AmpliTech and AAC Technologies 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 AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and AAC Technologies.
Diversification Opportunities for AmpliTech and AAC Technologies
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between AmpliTech and AAC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings 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 AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of AmpliTech i.e., AmpliTech and AAC Technologies go up and down completely randomly.
Pair Corralation between AmpliTech and AAC Technologies
Assuming the 90 days horizon AmpliTech Group is expected to generate 6.9 times more return on investment than AAC Technologies. However, AmpliTech is 6.9 times more volatile than AAC Technologies Holdings. It trades about 0.05 of its potential returns per unit of risk. AAC Technologies Holdings is currently generating about 0.1 per unit of risk. If you would invest 15.00 in AmpliTech Group on September 1, 2024 and sell it today you would lose (11.81) from holding AmpliTech Group or give up 78.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
AmpliTech Group vs. AAC Technologies Holdings
Performance |
| Timeline |
| AmpliTech Group |
| AAC Technologies Holdings |
AmpliTech and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and AAC Technologies
The main advantage of trading using opposite AmpliTech and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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