Correlation Between Knowles Cor and Amplitech
Can any of the company-specific risk be diversified away by investing in both Knowles Cor 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 Knowles Cor and Amplitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and Amplitech Group, you can compare the effects of market volatilities on Knowles Cor 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 Knowles Cor with a short position of Amplitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and Amplitech.
Diversification Opportunities for Knowles Cor and Amplitech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Knowles and Amplitech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and Amplitech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitech Group and Knowles Cor 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 Knowles Cor 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 Knowles Cor i.e., Knowles Cor and Amplitech go up and down completely randomly.
Pair Corralation between Knowles Cor and Amplitech
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 0.19 times more return on investment than Amplitech. However, Knowles Cor is 5.29 times less risky than Amplitech. It trades about 0.23 of its potential returns per unit of risk. Amplitech Group is currently generating about 0.03 per unit of risk. If you would invest 1,754 in Knowles Cor on September 2, 2024 and sell it today you would earn a total of 192.00 from holding Knowles Cor or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. Amplitech Group
Performance |
| Timeline |
| Knowles Cor |
| Amplitech Group |
Knowles Cor and Amplitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and Amplitech
The main advantage of trading using opposite Knowles Cor and Amplitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor 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.| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
| Amplitech vs. Knowles Cor | Amplitech vs. Ubiquiti Networks | Amplitech vs. AmpliTech Group | Amplitech vs. Viavi Solutions |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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