Correlation Between Amplitude Surgical and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Amplitude Surgical and Ekinops SA 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 Amplitude Surgical and Ekinops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplitude Surgical SAS and Ekinops SA, you can compare the effects of market volatilities on Amplitude Surgical and Ekinops SA 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 Amplitude Surgical with a short position of Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplitude Surgical and Ekinops SA.
Diversification Opportunities for Amplitude Surgical and Ekinops SA
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amplitude and Ekinops is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amplitude Surgical SAS and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops SA and Amplitude Surgical 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 Amplitude Surgical SAS are associated (or correlated) with Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Amplitude Surgical i.e., Amplitude Surgical and Ekinops SA go up and down completely randomly.
Pair Corralation between Amplitude Surgical and Ekinops SA
Assuming the 90 days trading horizon Amplitude Surgical SAS is expected to generate 1.21 times more return on investment than Ekinops SA. However, Amplitude Surgical is 1.21 times more volatile than Ekinops SA. It trades about 0.08 of its potential returns per unit of risk. Ekinops SA is currently generating about -0.15 per unit of risk. If you would invest 318.00 in Amplitude Surgical SAS on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Amplitude Surgical SAS or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Amplitude Surgical SAS vs. Ekinops SA
Performance |
| Timeline |
| Amplitude Surgical SAS |
| Ekinops SA |
Amplitude Surgical and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplitude Surgical and Ekinops SA
The main advantage of trading using opposite Amplitude Surgical and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplitude Surgical position performs unexpectedly, Ekinops SA 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.The idea behind Amplitude Surgical SAS and Ekinops SA 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.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |