Correlation Between Rogers Corp and Amphenol Corp

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

Diversification Opportunities for Rogers Corp and Amphenol Corp

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Rogers and Amphenol is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Corp and Amphenol Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol Corp and Rogers Corp 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 Rogers Corp are associated (or correlated) with Amphenol Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol Corp has no effect on the direction of Rogers Corp i.e., Rogers Corp and Amphenol Corp go up and down completely randomly.

Pair Corralation between Rogers Corp and Amphenol Corp

Considering the 90-day investment horizon Rogers Corp is expected to generate 0.33 times more return on investment than Amphenol Corp. However, Rogers Corp is 3.05 times less risky than Amphenol Corp. It trades about -0.09 of its potential returns per unit of risk. Amphenol Corp is currently generating about -0.07 per unit of risk. If you would invest  27,300  in Rogers Corp on March 28, 2022 and sell it today you would lose (1,347)  from holding Rogers Corp or give up 4.93% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Rogers Corp  vs.  Amphenol Corp

 Performance (%) 
      Timeline 
Rogers Corp 
Rogers Performance
0 of 100
Over the last 90 days Rogers Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Rogers Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Structure and Payout Changes

Last Split Factor
2:1
Ex Dividend Date
1992-01-09
Last Split Date
2000-05-30

Rogers Price Channel

Amphenol Corp 
Amphenol Performance
0 of 100
Over the last 90 days Amphenol Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Amphenol Price Channel

Rogers Corp and Amphenol Corp Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Rogers Corp and Amphenol Corp

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

Rogers Corp

Pair trading matchups for Rogers Corp

The idea behind Rogers Corp and Amphenol 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.
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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