Correlation Between Amplitech and AKA Brands

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

Diversification Opportunities for Amplitech and AKA Brands

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Amplitech and AKA Brands is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Amplitech Group and AKA Brands Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKA Brands 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 AKA Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKA Brands Holding has no effect on the direction of Amplitech i.e., Amplitech and AKA Brands go up and down completely randomly.

Pair Corralation between Amplitech and AKA Brands

Given the investment horizon of 90 days Amplitech Group is expected to generate 0.21 times more return on investment than AKA Brands. However, Amplitech Group is 4.79 times less risky than AKA Brands. It trades about -0.44 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.11 per unit of risk. If you would invest  217.00  in Amplitech Group on June 27, 2022 and sell it today you would lose (35.00)  from holding Amplitech Group or give up 16.13% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Amplitech Group  vs.  AKA Brands Holding

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

Amplitech Price Channel

AKA Brands Holding 
AKA Brands Performance
0 of 100
Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

AKA Brands Price Channel

Amplitech and AKA Brands Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amplitech and AKA Brands

The main advantage of trading using opposite Amplitech and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplitech position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.
Amplitech vs. Industrias Bachoco SA
The idea behind Amplitech Group and AKA Brands Holding 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.
AKA Brands vs. BUSHVELD MINERALS LTD
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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