Correlation Between Karat Packaging and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both Karat Packaging and Amplify Thematic 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 Karat Packaging and Amplify Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karat Packaging and Amplify Thematic All Stars, you can compare the effects of market volatilities on Karat Packaging and Amplify Thematic 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 Karat Packaging with a short position of Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karat Packaging and Amplify Thematic.
Diversification Opportunities for Karat Packaging and Amplify Thematic
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Karat and Amplify is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Karat Packaging and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All and Karat Packaging 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 Karat Packaging are associated (or correlated) with Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of Karat Packaging i.e., Karat Packaging and Amplify Thematic go up and down completely randomly.
Pair Corralation between Karat Packaging and Amplify Thematic
Considering the 90-day investment horizon Karat Packaging is expected to generate 1.73 times more return on investment than Amplify Thematic. However, Karat Packaging is 1.73 times more volatile than Amplify Thematic All Stars. It trades about 0.28 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.19 per unit of risk. If you would invest 2,646 in Karat Packaging on August 30, 2024 and sell it today you would earn a total of 400.00 from holding Karat Packaging or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karat Packaging vs. Amplify Thematic All Stars
Performance |
| Timeline |
| Karat Packaging |
| Amplify Thematic All |
Karat Packaging and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karat Packaging and Amplify Thematic
The main advantage of trading using opposite Karat Packaging and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karat Packaging position performs unexpectedly, Amplify Thematic 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 Amplify Thematic will offset losses from the drop in Amplify Thematic's long position.| Karat Packaging vs. Greif Bros | Karat Packaging vs. Reynolds Consumer Products | Karat Packaging vs. Silgan Holdings | Karat Packaging vs. O I Glass |
| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |