Correlation Between Davide Campari and Amplify Energy

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

By analyzing existing cross correlation between Davide Campari Milano NV and Amplify Energy Corp, you can compare the effects of market volatilities on Davide Campari and Amplify Energy 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 Davide Campari with a short position of Amplify Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Davide Campari and Amplify Energy.

Diversification Opportunities for Davide Campari and Amplify Energy

-0.47

Correlation Coefficient

Davide Campari  Amplify Energy

Very good diversification

The 3 months correlation between Davide and Amplify is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Davide Campari Milano NV and Amplify Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Energy Corp and Davide Campari 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 Davide Campari Milano NV are associated (or correlated) with Amplify Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Energy Corp has no effect on the direction of Davide Campari i.e., Davide Campari and Amplify Energy go up and down completely randomly.

Pair Corralation between Davide Campari and Amplify Energy

Assuming the 90 days horizon Davide Campari Milano NV is expected to under-perform the Amplify Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Davide Campari Milano NV is 1.09 times less risky than Amplify Energy. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Amplify Energy Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  639.00  in Amplify Energy Corp on January 20, 2024 and sell it today you would earn a total of  38.00  from holding Amplify Energy Corp or generate 5.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Davide Campari Milano NV  vs.  Amplify Energy Corp

Davide Campari Milano

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Davide Campari Milano NV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, Davide Campari is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amplify Energy Corp

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with Davide Campari and Amplify Energy

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

The idea behind Davide Campari Milano NV and Amplify Energy Corp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.