Correlation Between Domo and Amphenol
Can any of the company-specific risk be diversified away by investing in both Domo and Amphenol 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 Domo and Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Domo Inc and Amphenol, you can compare the effects of market volatilities on Domo and Amphenol 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 Domo with a short position of Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Domo and Amphenol.
Diversification Opportunities for Domo and Amphenol
Pay attention - limited upside
The 3 months correlation between Domo and Amphenol is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Domo Inc and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol and Domo 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 Domo Inc are associated (or correlated) with Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Domo i.e., Domo and Amphenol go up and down completely randomly.
Pair Corralation between Domo and Amphenol
Given the investment horizon of 90 days Domo Inc is expected to under-perform the Amphenol. In addition to that, Domo is 1.68 times more volatile than Amphenol. It trades about -0.05 of its total potential returns per unit of risk. Amphenol is currently generating about 0.67 per unit of volatility. If you would invest 11,426 in Amphenol on February 23, 2024 and sell it today you would earn a total of 2,031 from holding Amphenol or generate 17.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Domo Inc vs. Amphenol
Performance |
Timeline |
Domo Inc |
Amphenol |
Domo and Amphenol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Domo and Amphenol
The main advantage of trading using opposite Domo and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Domo position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.Domo vs. Zoom Video Communications | Domo vs. Snowflake | Domo vs. Small Cap Core | Domo vs. High Yield Municipal Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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