Correlation Between Electronic Systems and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Electronic Systems 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 Electronic Systems and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Systems Technology and AmpliTech Group, you can compare the effects of market volatilities on Electronic Systems 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 Electronic Systems with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Systems and AmpliTech.
Diversification Opportunities for Electronic Systems and AmpliTech
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Electronic and AmpliTech is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Systems Technology and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Electronic Systems 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 Electronic Systems Technology 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 Electronic Systems i.e., Electronic Systems and AmpliTech go up and down completely randomly.
Pair Corralation between Electronic Systems and AmpliTech
Given the investment horizon of 90 days Electronic Systems Technology is expected to under-perform the AmpliTech. But the pink sheet apears to be less risky and, when comparing its historical volatility, Electronic Systems Technology is 15.67 times less risky than AmpliTech. The pink sheet trades about -0.16 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2.30 in AmpliTech Group on August 29, 2024 and sell it today you would earn a total of 0.12 from holding AmpliTech Group or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronic Systems Technology vs. AmpliTech Group
Performance |
| Timeline |
| Electronic Systems |
| AmpliTech Group |
Electronic Systems and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Systems and AmpliTech
The main advantage of trading using opposite Electronic Systems and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Systems 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.| Electronic Systems vs. BeWhere Holdings | Electronic Systems vs. Frequency Electronics | Electronic Systems vs. Wialan Technologies | Electronic Systems vs. TPT Global Tech |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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