Correlation Between AmpliTech and CommScope Holding
Can any of the company-specific risk be diversified away by investing in both AmpliTech and CommScope Holding 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 CommScope Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmpliTech Group and CommScope Holding Co, you can compare the effects of market volatilities on AmpliTech and CommScope Holding 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 CommScope Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmpliTech and CommScope Holding.
Diversification Opportunities for AmpliTech and CommScope Holding
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AmpliTech and CommScope is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and CommScope Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CommScope Holding 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 CommScope Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CommScope Holding has no effect on the direction of AmpliTech i.e., AmpliTech and CommScope Holding go up and down completely randomly.
Pair Corralation between AmpliTech and CommScope Holding
Assuming the 90 days horizon AmpliTech Group is expected to generate 1.14 times more return on investment than CommScope Holding. However, AmpliTech is 1.14 times more volatile than CommScope Holding Co. It trades about 0.21 of its potential returns per unit of risk. CommScope Holding Co is currently generating about -0.22 per unit of risk. If you would invest 14.00 in AmpliTech Group on February 1, 2024 and sell it today you would earn a total of 4.00 from holding AmpliTech Group or generate 28.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AmpliTech Group vs. CommScope Holding Co
Performance |
Timeline |
AmpliTech Group |
CommScope Holding |
AmpliTech and CommScope Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AmpliTech and CommScope Holding
The main advantage of trading using opposite AmpliTech and CommScope Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech position performs unexpectedly, CommScope Holding 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 CommScope Holding will offset losses from the drop in CommScope Holding's long position.AmpliTech vs. Ubiquiti Networks | AmpliTech vs. Viavi Solutions | AmpliTech vs. Vislink Technologies | AmpliTech vs. DZS Inc |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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