Correlation Between Polar Power and Amprius Technologies
Can any of the company-specific risk be diversified away by investing in both Polar Power and Amprius Technologies 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 Polar Power and Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polar Power and Amprius Technologies, you can compare the effects of market volatilities on Polar Power and Amprius Technologies 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 Polar Power with a short position of Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polar Power and Amprius Technologies.
Diversification Opportunities for Polar Power and Amprius Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Polar and Amprius is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Polar Power and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies and Polar Power 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 Polar Power are associated (or correlated) with Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of Polar Power i.e., Polar Power and Amprius Technologies go up and down completely randomly.
Pair Corralation between Polar Power and Amprius Technologies
Given the investment horizon of 90 days Polar Power is expected to generate 0.84 times more return on investment than Amprius Technologies. However, Polar Power is 1.19 times less risky than Amprius Technologies. It trades about 0.02 of its potential returns per unit of risk. Amprius Technologies is currently generating about -0.01 per unit of risk. If you would invest 363.00 in Polar Power on August 29, 2024 and sell it today you would lose (68.00) from holding Polar Power or give up 18.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polar Power vs. Amprius Technologies
Performance |
| Timeline |
| Polar Power |
| Amprius Technologies |
Polar Power and Amprius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polar Power and Amprius Technologies
The main advantage of trading using opposite Polar Power and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polar Power position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.| Polar Power vs. CBAK Energy Technology | Polar Power vs. Ocean Power Technologies | Polar Power vs. Enersys | Polar Power vs. Flux Power Holdings |
| Amprius Technologies vs. Eos Energy Enterprises | Amprius Technologies vs. FREYR Battery SA | Amprius Technologies vs. Microvast Holdings | Amprius Technologies vs. Chardan NexTech Acquisition |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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