Correlation Between Frequency Electronics and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Frequency Electronics 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 Frequency Electronics and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Electronics and AmpliTech Group, you can compare the effects of market volatilities on Frequency Electronics 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 Frequency Electronics with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Electronics and AmpliTech.
Diversification Opportunities for Frequency Electronics and AmpliTech
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Frequency and AmpliTech is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Electronics and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Frequency Electronics 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 Frequency Electronics 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 Frequency Electronics i.e., Frequency Electronics and AmpliTech go up and down completely randomly.
Pair Corralation between Frequency Electronics and AmpliTech
Given the investment horizon of 90 days Frequency Electronics is expected to generate 9.76 times less return on investment than AmpliTech. But when comparing it to its historical volatility, Frequency Electronics is 29.41 times less risky than AmpliTech. It trades about 0.34 of its potential returns per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frequency Electronics vs. AmpliTech Group
Performance |
| Timeline |
| Frequency Electronics |
| AmpliTech Group |
Frequency Electronics and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Electronics and AmpliTech
The main advantage of trading using opposite Frequency Electronics and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Electronics 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.| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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