Correlation Between AmpliTech and Airgain
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Airgain 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 Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Airgain, you can compare the effects of market volatilities on AmpliTech and Airgain 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 Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Airgain.
Diversification Opportunities for AmpliTech and Airgain
Excellent diversification
The 3 months correlation between AmpliTech and Airgain is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain 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 Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of AmpliTech i.e., AmpliTech and Airgain go up and down completely randomly.
Pair Corralation between AmpliTech and Airgain
Assuming the 90 days horizon AmpliTech Group is expected to generate 6.68 times more return on investment than Airgain. However, AmpliTech is 6.68 times more volatile than Airgain. It trades about 0.03 of its potential returns per unit of risk. Airgain is currently generating about 0.13 per unit of risk. If you would invest 7.00 in AmpliTech Group on August 29, 2024 and sell it today you would lose (5.40) from holding AmpliTech Group or give up 77.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmpliTech Group vs. Airgain
Performance |
| Timeline |
| AmpliTech Group |
| Airgain |
AmpliTech and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Airgain
The main advantage of trading using opposite AmpliTech and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
| Airgain vs. Cps Technologies | Airgain vs. Akoustis Technologies | Airgain vs. Cambium Networks Corp | Airgain vs. Ceragon Networks |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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