Correlation Between Infinera and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Infinera 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 Infinera and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinera and AmpliTech Group, you can compare the effects of market volatilities on Infinera 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 Infinera with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinera and AmpliTech.
Diversification Opportunities for Infinera and AmpliTech
Excellent diversification
The 3 months correlation between Infinera and AmpliTech is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Infinera and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Infinera 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 Infinera 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 Infinera i.e., Infinera and AmpliTech go up and down completely randomly.
Pair Corralation between Infinera and AmpliTech
Given the investment horizon of 90 days Infinera is expected to generate 149.16 times less return on investment than AmpliTech. But when comparing it to its historical volatility, Infinera is 86.09 times less risky than AmpliTech. It trades about 0.1 of its potential returns per unit of risk. AmpliTech Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 68.00 in AmpliTech Group on November 3, 2024 and sell it today you would earn a total of 35.00 from holding AmpliTech Group or generate 51.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Infinera vs. AmpliTech Group
Performance |
| Timeline |
| Infinera |
| AmpliTech Group |
Infinera and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinera and AmpliTech
The main advantage of trading using opposite Infinera and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinera 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.| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
| AmpliTech vs. Auddia Inc | 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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