Correlation Between AmpliTech and Ubiquiti Networks
Can any of the company-specific risk be diversified away by investing in both AmpliTech and Ubiquiti Networks 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 Ubiquiti Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and Ubiquiti Networks, you can compare the effects of market volatilities on AmpliTech and Ubiquiti Networks 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 Ubiquiti Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Ubiquiti Networks.
Diversification Opportunities for AmpliTech and Ubiquiti Networks
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AmpliTech and Ubiquiti is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Ubiquiti Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubiquiti Networks 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 Ubiquiti Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubiquiti Networks has no effect on the direction of AmpliTech i.e., AmpliTech and Ubiquiti Networks go up and down completely randomly.
Pair Corralation between AmpliTech and Ubiquiti Networks
Assuming the 90 days horizon AmpliTech Group is expected to generate 8.92 times more return on investment than Ubiquiti Networks. However, AmpliTech is 8.92 times more volatile than Ubiquiti Networks. It trades about 0.13 of its potential returns per unit of risk. Ubiquiti Networks is currently generating about 0.26 per unit of risk. If you would invest 3.20 in AmpliTech Group on September 2, 2024 and sell it today you would earn a total of 0.00 from holding AmpliTech Group or generate 0.0% 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. Ubiquiti Networks
Performance |
| Timeline |
| AmpliTech Group |
| Ubiquiti Networks |
AmpliTech and Ubiquiti Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmpliTech and Ubiquiti Networks
The main advantage of trading using opposite AmpliTech and Ubiquiti Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Ubiquiti Networks 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 Ubiquiti Networks will offset losses from the drop in Ubiquiti Networks' long position.| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
| Ubiquiti Networks vs. Credo Technology Group | Ubiquiti Networks vs. Zebra Technologies | Ubiquiti Networks vs. Ciena Corp | Ubiquiti Networks vs. Clearfield |
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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