Correlation Between RoboGroup TEK and Amprius Technologies

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Can any of the company-specific risk be diversified away by investing in both RoboGroup TEK and Amprius Technologies 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 RoboGroup TEK and Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RoboGroup TEK and Amprius Technologies, you can compare the effects of market volatilities on RoboGroup TEK and Amprius Technologies 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 RoboGroup TEK with a short position of Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoboGroup TEK and Amprius Technologies.

Diversification Opportunities for RoboGroup TEK and Amprius Technologies

-0.83
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between RoboGroup and Amprius is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding RoboGroup TEK and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies and RoboGroup TEK 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 RoboGroup TEK are associated (or correlated) with Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of RoboGroup TEK i.e., RoboGroup TEK and Amprius Technologies go up and down completely randomly.

Pair Corralation between RoboGroup TEK and Amprius Technologies

Assuming the 90 days horizon RoboGroup TEK is expected to generate 7.56 times more return on investment than Amprius Technologies. However, RoboGroup TEK is 7.56 times more volatile than Amprius Technologies. It trades about 0.06 of its potential returns per unit of risk. Amprius Technologies is currently generating about -0.02 per unit of risk. If you would invest  60.00  in RoboGroup TEK on February 21, 2024 and sell it today you would lose (30.00) from holding RoboGroup TEK or give up 50.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy91.76%
ValuesDaily Returns

RoboGroup TEK  vs.  Amprius Technologies

 Performance 
       Timeline  
RoboGroup TEK 

Risk-Adjusted Performance

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Weak
 
Strong
Good
Over the last 90 days RoboGroup TEK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating basic indicators, RoboGroup TEK reported solid returns over the last few months and may actually be approaching a breakup point.
Amprius Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amprius Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

RoboGroup TEK and Amprius Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with RoboGroup TEK and Amprius Technologies

The main advantage of trading using opposite RoboGroup TEK and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoboGroup TEK position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.
The idea behind RoboGroup TEK and Amprius Technologies 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.
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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