Correlation Between Chardan NexTech and Amprius Technologies
Can any of the company-specific risk be diversified away by investing in both Chardan NexTech and Amprius Technologies 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 Chardan NexTech and Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chardan NexTech Acquisition and Amprius Technologies, you can compare the effects of market volatilities on Chardan NexTech and Amprius Technologies 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 Chardan NexTech with a short position of Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Amprius Technologies.
Diversification Opportunities for Chardan NexTech and Amprius Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chardan and Amprius is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies and Chardan NexTech 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 Chardan NexTech Acquisition are associated (or correlated) with Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of Chardan NexTech i.e., Chardan NexTech and Amprius Technologies go up and down completely randomly.
Pair Corralation between Chardan NexTech and Amprius Technologies
Given the investment horizon of 90 days Chardan NexTech Acquisition is expected to under-perform the Amprius Technologies. In addition to that, Chardan NexTech is 1.02 times more volatile than Amprius Technologies. It trades about -0.05 of its total potential returns per unit of risk. Amprius Technologies is currently generating about 0.02 per unit of volatility. If you would invest 648.00 in Amprius Technologies on October 24, 2024 and sell it today you would lose (316.00) from holding Amprius Technologies or give up 48.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chardan NexTech Acquisition vs. Amprius Technologies
Performance |
| Timeline |
| Chardan NexTech Acqu |
| Amprius Technologies |
Chardan NexTech and Amprius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chardan NexTech and Amprius Technologies
The main advantage of trading using opposite Chardan NexTech and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.| Chardan NexTech vs. Polar Power | Chardan NexTech vs. Eos Energy Enterprises | Chardan NexTech vs. Sunrise New Energy | Chardan NexTech vs. AFC Energy plc |
| Amprius Technologies vs. Eos Energy Enterprises | Amprius Technologies vs. FREYR Battery SA | Amprius Technologies vs. Microvast Holdings | Amprius Technologies vs. Chardan NexTech Acquisition |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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