Correlation Between Amplify Thematic and Nexalin Technology
Can any of the company-specific risk be diversified away by investing in both Amplify Thematic and Nexalin Technology 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 Amplify Thematic and Nexalin Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Thematic All Stars and Nexalin Technology, you can compare the effects of market volatilities on Amplify Thematic and Nexalin Technology 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 Amplify Thematic with a short position of Nexalin Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Thematic and Nexalin Technology.
Diversification Opportunities for Amplify Thematic and Nexalin Technology
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and Nexalin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Thematic All Stars and Nexalin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexalin Technology and Amplify Thematic 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 Amplify Thematic All Stars are associated (or correlated) with Nexalin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexalin Technology has no effect on the direction of Amplify Thematic i.e., Amplify Thematic and Nexalin Technology go up and down completely randomly.
Pair Corralation between Amplify Thematic and Nexalin Technology
Given the investment horizon of 90 days Amplify Thematic is expected to generate 8.26 times less return on investment than Nexalin Technology. But when comparing it to its historical volatility, Amplify Thematic All Stars is 8.08 times less risky than Nexalin Technology. It trades about 0.06 of its potential returns per unit of risk. Nexalin Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Nexalin Technology on August 30, 2024 and sell it today you would earn a total of 205.00 from holding Nexalin Technology or generate 92.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Thematic All Stars vs. Nexalin Technology
Performance |
| Timeline |
| Amplify Thematic All |
| Nexalin Technology |
Amplify Thematic and Nexalin Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Thematic and Nexalin Technology
The main advantage of trading using opposite Amplify Thematic and Nexalin Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Thematic position performs unexpectedly, Nexalin Technology 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 Nexalin Technology will offset losses from the drop in Nexalin Technology's long position.| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
| Nexalin Technology vs. Electromed | Nexalin Technology vs. Armm Inc | Nexalin Technology vs. SurModics | Nexalin Technology vs. Bluejay Diagnostics |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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