Correlation Between Espey Mfg and Amprius Technologies
Can any of the company-specific risk be diversified away by investing in both Espey Mfg 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 Espey Mfg and Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Espey Mfg Electronics and Amprius Technologies, you can compare the effects of market volatilities on Espey Mfg 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 Espey Mfg with a short position of Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Espey Mfg and Amprius Technologies.
Diversification Opportunities for Espey Mfg and Amprius Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Espey and Amprius is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Espey Mfg Electronics and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies and Espey Mfg 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 Espey Mfg Electronics 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 Espey Mfg i.e., Espey Mfg and Amprius Technologies go up and down completely randomly.
Pair Corralation between Espey Mfg and Amprius Technologies
Considering the 90-day investment horizon Espey Mfg Electronics is expected to under-perform the Amprius Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Espey Mfg Electronics is 7.28 times less risky than Amprius Technologies. The stock trades about -0.17 of its potential returns per unit of risk. The Amprius Technologies is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Amprius Technologies on August 24, 2024 and sell it today you would earn a total of 44.00 from holding Amprius Technologies or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Espey Mfg Electronics vs. Amprius Technologies
Performance |
| Timeline |
| Espey Mfg Electronics |
| Amprius Technologies |
Espey Mfg and Amprius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Espey Mfg and Amprius Technologies
The main advantage of trading using opposite Espey Mfg and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Espey Mfg 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.| Espey Mfg vs. Chicago Rivet Machine | Espey Mfg vs. Eastern Co | Espey Mfg vs. Servotronics | Espey Mfg vs. Evans Bancorp |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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