Correlation Between Ituran Location and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Ituran Location 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 Ituran Location and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ituran Location and and AmpliTech Group, you can compare the effects of market volatilities on Ituran Location 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 Ituran Location with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and AmpliTech.
Diversification Opportunities for Ituran Location and AmpliTech
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ituran and AmpliTech is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Ituran Location 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 Ituran Location and 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 Ituran Location i.e., Ituran Location and AmpliTech go up and down completely randomly.
Pair Corralation between Ituran Location and AmpliTech
Given the investment horizon of 90 days Ituran Location is expected to generate 24.46 times less return on investment than AmpliTech. But when comparing it to its historical volatility, Ituran Location and is 18.31 times less risky than AmpliTech. It trades about 0.09 of its potential returns per unit of risk. AmpliTech Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11.00 in AmpliTech Group on November 4, 2024 and sell it today you would earn a total of 64.00 from holding AmpliTech Group or generate 581.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ituran Location and vs. AmpliTech Group
Performance |
| Timeline |
| Ituran Location |
| AmpliTech Group |
Ituran Location and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and AmpliTech
The main advantage of trading using opposite Ituran Location and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location 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.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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