Correlation Between Desktop Metal and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Desktop Metal and AmpliTech 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 Desktop Metal and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desktop Metal and AmpliTech Group, you can compare the effects of market volatilities on Desktop Metal and AmpliTech 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 Desktop Metal with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desktop Metal and AmpliTech.
Diversification Opportunities for Desktop Metal and AmpliTech
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Desktop and AmpliTech is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Desktop Metal and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Desktop Metal 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 Desktop Metal are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Desktop Metal i.e., Desktop Metal and AmpliTech go up and down completely randomly.
Pair Corralation between Desktop Metal and AmpliTech
Allowing for the 90-day total investment horizon Desktop Metal is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Desktop Metal is 9.78 times less risky than AmpliTech. The stock trades about -0.1 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.00 in AmpliTech Group on September 3, 2024 and sell it today you would lose (1.80) from holding AmpliTech Group or give up 36.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desktop Metal vs. AmpliTech Group
Performance |
| Timeline |
| Desktop Metal |
| AmpliTech Group |
Desktop Metal and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desktop Metal and AmpliTech
The main advantage of trading using opposite Desktop Metal and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desktop Metal position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.| Desktop Metal vs. Nano Dimension | Desktop Metal vs. 3D Systems | Desktop Metal vs. Markforged Holding Corp | Desktop Metal vs. Stratasys |
| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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