Correlation Between Amplitude Surgical and Parx Plastics
Can any of the company-specific risk be diversified away by investing in both Amplitude Surgical and Parx Plastics 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 Amplitude Surgical and Parx Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplitude Surgical SAS and Parx Plastics NV, you can compare the effects of market volatilities on Amplitude Surgical and Parx Plastics 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 Amplitude Surgical with a short position of Parx Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplitude Surgical and Parx Plastics.
Diversification Opportunities for Amplitude Surgical and Parx Plastics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amplitude and Parx is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Amplitude Surgical SAS and Parx Plastics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parx Plastics NV and Amplitude Surgical 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 Amplitude Surgical SAS are associated (or correlated) with Parx Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parx Plastics NV has no effect on the direction of Amplitude Surgical i.e., Amplitude Surgical and Parx Plastics go up and down completely randomly.
Pair Corralation between Amplitude Surgical and Parx Plastics
Assuming the 90 days trading horizon Amplitude Surgical SAS is expected to under-perform the Parx Plastics. But the stock apears to be less risky and, when comparing its historical volatility, Amplitude Surgical SAS is 2.16 times less risky than Parx Plastics. The stock trades about -0.02 of its potential returns per unit of risk. The Parx Plastics NV is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Parx Plastics NV on September 25, 2024 and sell it today you would earn a total of 20.00 from holding Parx Plastics NV or generate 200.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Amplitude Surgical SAS vs. Parx Plastics NV
Performance |
Timeline |
Amplitude Surgical SAS |
Parx Plastics NV |
Amplitude Surgical and Parx Plastics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amplitude Surgical and Parx Plastics
The main advantage of trading using opposite Amplitude Surgical and Parx Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplitude Surgical position performs unexpectedly, Parx Plastics 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 Parx Plastics will offset losses from the drop in Parx Plastics' long position.The idea behind Amplitude Surgical SAS and Parx Plastics NV 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.Parx Plastics vs. Amplitude Surgical SAS | Parx Plastics vs. Sensorion SA | Parx Plastics vs. Valbiotis SAS | Parx Plastics vs. Fiducial Office Solutions |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |