Correlation Between Silver Spike and Amphastar
Can any of the company-specific risk be diversified away by investing in both Silver Spike and Amphastar 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 Silver Spike and Amphastar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silver Spike Investment and Amphastar P, you can compare the effects of market volatilities on Silver Spike and Amphastar 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 Silver Spike with a short position of Amphastar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silver Spike and Amphastar.
Diversification Opportunities for Silver Spike and Amphastar
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silver and Amphastar is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Silver Spike Investment and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Silver Spike 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 Silver Spike Investment are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Silver Spike i.e., Silver Spike and Amphastar go up and down completely randomly.
Pair Corralation between Silver Spike and Amphastar
Given the investment horizon of 90 days Silver Spike Investment is expected to generate 0.72 times more return on investment than Amphastar. However, Silver Spike Investment is 1.38 times less risky than Amphastar. It trades about 0.07 of its potential returns per unit of risk. Amphastar P is currently generating about 0.04 per unit of risk. If you would invest 776.00 in Silver Spike Investment on August 27, 2024 and sell it today you would earn a total of 520.00 from holding Silver Spike Investment or generate 67.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.73% |
| Values | Daily Returns |
Silver Spike Investment vs. Amphastar P
Performance |
| Timeline |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Amphastar P |
Silver Spike and Amphastar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silver Spike and Amphastar
The main advantage of trading using opposite Silver Spike and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silver Spike position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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