Correlation Between Sentry Petroleum and Amphastar

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

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

Diversification Opportunities for Sentry Petroleum and Amphastar

0.0

Correlation Coefficient

Sentry Petroleum  Amphastar

Pay attention - limited upside

The 3 months correlation between Sentry and Amphastar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sentry Petroleum and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Sentry Petroleum 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 Sentry Petroleum 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 Sentry Petroleum i.e., Sentry Petroleum and Amphastar go up and down completely randomly.

Pair Corralation between Sentry Petroleum and Amphastar

If you would invest  0.01  in Sentry Petroleum on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Sentry Petroleum or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Sentry Petroleum  vs.  Amphastar P

Sentry Petroleum

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sentry Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Sentry Petroleum is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Amphastar P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Sentry Petroleum and Amphastar

The main advantage of trading using opposite Sentry Petroleum and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentry Petroleum 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.

The idea behind Sentry Petroleum and Amphastar P 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.