Correlation Between Minim and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Minim 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 Minim and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and AmpliTech Group, you can compare the effects of market volatilities on Minim 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 Minim with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and AmpliTech.
Diversification Opportunities for Minim and AmpliTech
Weak diversification
The 3 months correlation between Minim and AmpliTech is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Minim 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 Minim Inc 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 Minim i.e., Minim and AmpliTech go up and down completely randomly.
Pair Corralation between Minim and AmpliTech
Given the investment horizon of 90 days Minim Inc is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Minim Inc is 3.9 times less risky than AmpliTech. The stock trades about -0.07 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7.00 in AmpliTech Group on September 2, 2024 and sell it today you would lose (3.80) from holding AmpliTech Group or give up 54.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Minim Inc vs. AmpliTech Group
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AmpliTech Group |
Minim and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and AmpliTech
The main advantage of trading using opposite Minim and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim 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.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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