Correlation Between Rogers and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Rogers 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 Rogers and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers and AmpliTech Group, you can compare the effects of market volatilities on Rogers 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 Rogers with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers and AmpliTech.
Diversification Opportunities for Rogers and AmpliTech
Excellent diversification
The 3 months correlation between Rogers and AmpliTech is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Rogers and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Rogers 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 Rogers 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 Rogers i.e., Rogers and AmpliTech go up and down completely randomly.
Pair Corralation between Rogers and AmpliTech
Considering the 90-day investment horizon Rogers is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Rogers is 29.15 times less risky than AmpliTech. The stock trades about -0.17 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3.20 in AmpliTech Group on November 3, 2024 and sell it today you would earn a total of 71.80 from holding AmpliTech Group or generate 2243.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers vs. AmpliTech Group
Performance |
| Timeline |
| Rogers |
| AmpliTech Group |
Rogers and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers and AmpliTech
The main advantage of trading using opposite Rogers and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers 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.| Rogers vs. Pearson PLC ADR | Rogers vs. Zane Interactive Publishing | Rogers vs. Western Acquisition Ventures | Rogers vs. 51Talk Online Education |
| AmpliTech vs. Auddia Inc | 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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