Correlation Between AmpliTech and Belden
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Belden 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 Belden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Belden Inc, you can compare the effects of market volatilities on AmpliTech and Belden 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 Belden. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Belden.
Diversification Opportunities for AmpliTech and Belden
Excellent diversification
The 3 months correlation between AmpliTech and Belden is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Belden Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belden 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 Belden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belden Inc has no effect on the direction of AmpliTech i.e., AmpliTech and Belden go up and down completely randomly.
Pair Corralation between AmpliTech and Belden
Assuming the 90 days horizon AmpliTech Group is expected to generate 20.76 times more return on investment than Belden. However, AmpliTech is 20.76 times more volatile than Belden Inc. It trades about 0.18 of its potential returns per unit of risk. Belden Inc is currently generating about 0.09 per unit of risk. If you would invest 5.10 in AmpliTech Group on November 2, 2024 and sell it today you would earn a total of 46.90 from holding AmpliTech Group or generate 919.61% 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. Belden Inc
Performance |
| Timeline |
| AmpliTech Group |
| Belden Inc |
AmpliTech and Belden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Belden
The main advantage of trading using opposite AmpliTech and Belden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Belden 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 Belden will offset losses from the drop in Belden's long position.| AmpliTech vs. Auddia Inc | AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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