Correlation Between AmpliTech and Flex
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Flex 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 Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Flex, you can compare the effects of market volatilities on AmpliTech and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Flex.
Diversification Opportunities for AmpliTech and Flex
Very weak diversification
The 3 months correlation between AmpliTech and Flex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of AmpliTech i.e., AmpliTech and Flex go up and down completely randomly.
Pair Corralation between AmpliTech and Flex
Assuming the 90 days horizon AmpliTech Group is expected to generate 6.33 times more return on investment than Flex. However, AmpliTech is 6.33 times more volatile than Flex. It trades about 0.09 of its potential returns per unit of risk. Flex is currently generating about 0.0 per unit of risk. If you would invest 67.00 in AmpliTech Group on November 28, 2024 and sell it today you would earn a total of 7.00 from holding AmpliTech Group or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmpliTech Group vs. Flex
Performance |
| Timeline |
| AmpliTech Group |
| Flex |
AmpliTech and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Flex
The main advantage of trading using opposite AmpliTech and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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