Correlation Between AmpliTech and Cps Technologies

Can any of the company-specific risk be diversified away by investing in both AmpliTech and Cps 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 AmpliTech and Cps Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AmpliTech Group and Cps Technologies, you can compare the effects of market volatilities on AmpliTech and Cps 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 AmpliTech with a short position of Cps Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and Cps Technologies.

Diversification Opportunities for AmpliTech and Cps Technologies

-0.23

Correlation Coefficient

AmpliTech  Cps Technologies

Very good diversification

The 3 months correlation between AmpliTech and Cps is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Cps Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cps Technologies and AmpliTech 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 AmpliTech Group are associated (or correlated) with Cps Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cps Technologies has no effect on the direction of AmpliTech i.e., AmpliTech and Cps Technologies go up and down completely randomly.

Pair Corralation between AmpliTech and Cps Technologies

Assuming the 90 days horizon AmpliTech Group is expected to generate 13.93 times more return on investment than Cps Technologies. However, AmpliTech is 13.93 times more volatile than Cps Technologies. It trades about 0.09 of its potential returns per unit of risk. Cps Technologies is currently generating about 0.09 per unit of risk. If you would invest  5.10  in AmpliTech Group on September 2, 2024 and sell it today you would lose (1.90) from holding AmpliTech Group or give up 37.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AmpliTech Group  vs.  Cps Technologies

AmpliTech Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AmpliTech Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, AmpliTech showed solid returns over the last few months and may actually be approaching a breakup point.

Cps Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cps Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Cps Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AmpliTech and Cps Technologies

The main advantage of trading using opposite AmpliTech and Cps Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, Cps 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 Cps Technologies will offset losses from the drop in Cps Technologies' long position.

The idea behind AmpliTech Group and Cps Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.