Correlation Between AmpliTech and Digi International
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Digi International 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 Digi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Digi International, you can compare the effects of market volatilities on AmpliTech and Digi International 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 Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Digi International.
Diversification Opportunities for AmpliTech and Digi International
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AmpliTech and Digi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International 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 Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of AmpliTech i.e., AmpliTech and Digi International go up and down completely randomly.
Pair Corralation between AmpliTech and Digi International
Assuming the 90 days horizon AmpliTech Group is expected to generate 16.15 times more return on investment than Digi International. However, AmpliTech is 16.15 times more volatile than Digi International. It trades about 0.17 of its potential returns per unit of risk. Digi International is currently generating about -0.14 per unit of risk. If you would invest 50.00 in AmpliTech Group on October 20, 2024 and sell it today you would earn a total of 20.00 from holding AmpliTech Group or generate 40.0% 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. Digi International
Performance |
| Timeline |
| AmpliTech Group |
| Digi International |
AmpliTech and Digi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Digi International
The main advantage of trading using opposite AmpliTech and Digi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Digi International 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 Digi International will offset losses from the drop in Digi International's long position.| AmpliTech vs. Auddia Inc | AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
| Digi International vs. Extreme Networks | Digi International vs. Ciena Corp | Digi International vs. Harmonic | Digi International vs. Comtech Telecommunications Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |