Correlation Between AmpliTech and Littelfuse
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Littelfuse 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 Littelfuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Littelfuse, you can compare the effects of market volatilities on AmpliTech and Littelfuse 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 Littelfuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Littelfuse.
Diversification Opportunities for AmpliTech and Littelfuse
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AmpliTech and Littelfuse is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Littelfuse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Littelfuse 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 Littelfuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Littelfuse has no effect on the direction of AmpliTech i.e., AmpliTech and Littelfuse go up and down completely randomly.
Pair Corralation between AmpliTech and Littelfuse
Assuming the 90 days horizon AmpliTech Group is expected to generate 12.13 times more return on investment than Littelfuse. However, AmpliTech is 12.13 times more volatile than Littelfuse. It trades about 0.06 of its potential returns per unit of risk. Littelfuse is currently generating about 0.02 per unit of risk. If you would invest 13.00 in AmpliTech Group on September 3, 2024 and sell it today you would lose (9.81) from holding AmpliTech Group or give up 75.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AmpliTech Group vs. Littelfuse
Performance |
| Timeline |
| AmpliTech Group |
| Littelfuse |
AmpliTech and Littelfuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Littelfuse
The main advantage of trading using opposite AmpliTech and Littelfuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Littelfuse 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 Littelfuse will offset losses from the drop in Littelfuse's long position.| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
| Littelfuse vs. Plexus Corp | Littelfuse vs. Celestica | Littelfuse vs. Benchmark Electronics | Littelfuse vs. Flex |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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