Correlation Between AmpliTech and ADTRAN
Can any of the company-specific risk be diversified away by investing in both AmpliTech and ADTRAN 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 ADTRAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and ADTRAN Inc, you can compare the effects of market volatilities on AmpliTech and ADTRAN 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 ADTRAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and ADTRAN.
Diversification Opportunities for AmpliTech and ADTRAN
Very good diversification
The 3 months correlation between AmpliTech and ADTRAN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and ADTRAN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADTRAN Inc 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 ADTRAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADTRAN Inc has no effect on the direction of AmpliTech i.e., AmpliTech and ADTRAN go up and down completely randomly.
Pair Corralation between AmpliTech and ADTRAN
Assuming the 90 days horizon AmpliTech Group is expected to under-perform the ADTRAN. In addition to that, AmpliTech is 3.12 times more volatile than ADTRAN Inc. It trades about -0.13 of its total potential returns per unit of risk. ADTRAN Inc is currently generating about 0.29 per unit of volatility. If you would invest 611.00 in ADTRAN Inc on August 24, 2024 and sell it today you would earn a total of 205.00 from holding ADTRAN Inc or generate 33.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmpliTech Group vs. ADTRAN Inc
Performance |
| Timeline |
| AmpliTech Group |
| ADTRAN Inc |
AmpliTech and ADTRAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and ADTRAN
The main advantage of trading using opposite AmpliTech and ADTRAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, ADTRAN 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 ADTRAN will offset losses from the drop in ADTRAN's long position.| AmpliTech vs. Hewlett Packard Enterprise | AmpliTech vs. Juniper Networks | AmpliTech vs. Cisco Systems | AmpliTech vs. Viavi Solutions |
| ADTRAN vs. Mynaric AG ADR | ADTRAN vs. KVH Industries | ADTRAN vs. Telesat Corp | ADTRAN vs. Digi International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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