Correlation Between AMPL and SCOR PK
Can any of the company-specific risk be diversified away by investing in both AMPL and SCOR PK 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 AMPL and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPL and SCOR PK, you can compare the effects of market volatilities on AMPL and SCOR PK 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 AMPL with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPL and SCOR PK.
Diversification Opportunities for AMPL and SCOR PK
Very good diversification
The 3 months correlation between AMPL and SCOR is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AMPL and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and AMPL 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 AMPL are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of AMPL i.e., AMPL and SCOR PK go up and down completely randomly.
Pair Corralation between AMPL and SCOR PK
Assuming the 90 days trading horizon AMPL is expected to generate 1.06 times less return on investment than SCOR PK. In addition to that, AMPL is 2.03 times more volatile than SCOR PK. It trades about 0.03 of its total potential returns per unit of risk. SCOR PK is currently generating about 0.06 per unit of volatility. If you would invest 250.00 in SCOR PK on January 15, 2025 and sell it today you would earn a total of 28.00 from holding SCOR PK or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
AMPL vs. SCOR PK
Performance |
| Timeline |
| AMPL |
| SCOR PK |
AMPL and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPL and SCOR PK
The main advantage of trading using opposite AMPL and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPL position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.The idea behind AMPL and SCOR PK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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