Correlation Between Amp and Bitcoin Diamond

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amp and Bitcoin Diamond 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 Amp and Bitcoin Diamond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amp and Bitcoin Diamond, you can compare the effects of market volatilities on Amp and Bitcoin Diamond 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 Amp with a short position of Bitcoin Diamond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amp and Bitcoin Diamond.

Diversification Opportunities for Amp and Bitcoin Diamond

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Amp and Bitcoin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amp and Bitcoin Diamond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Diamond and Amp 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 Amp are associated (or correlated) with Bitcoin Diamond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Diamond has no effect on the direction of Amp i.e., Amp and Bitcoin Diamond go up and down completely randomly.

Pair Corralation between Amp and Bitcoin Diamond

Assuming the 90 days trading horizon Amp is expected to generate 0.8 times more return on investment than Bitcoin Diamond. However, Amp is 1.25 times less risky than Bitcoin Diamond. It trades about -0.21 of its potential returns per unit of risk. Bitcoin Diamond is currently generating about -0.24 per unit of risk. If you would invest  2.89  in Amp on February 27, 2022 and sell it today you would lose (1.74)  from holding Amp or give up 60.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy96.97%
ValuesDaily Returns

Amp  vs.  Bitcoin Diamond

 Performance (%) 
      Timeline 
Amp 
Amp Performance
0 of 100
Over the last 90 days Amp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's primary indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for Amp investors.

Amp Price Channel

Bitcoin Diamond 
Bitcoin Performance
0 of 100
Over the last 90 days Bitcoin Diamond has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's fundamental indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for Bitcoin Diamond investors.

Bitcoin Price Channel

Amp and Bitcoin Diamond Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Amp and Bitcoin Diamond

The main advantage of trading using opposite Amp and Bitcoin Diamond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amp position performs unexpectedly, Bitcoin Diamond 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 Bitcoin Diamond will offset losses from the drop in Bitcoin Diamond's long position.
The idea behind Amp and Bitcoin Diamond 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go