Correlation Between Ampleforth and PancakeSwap

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

Diversification Opportunities for Ampleforth and PancakeSwap

0.72
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ampleforth and PancakeSwap is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ampleforth and PancakeSwap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PancakeSwap and Ampleforth 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 Ampleforth are associated (or correlated) with PancakeSwap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PancakeSwap has no effect on the direction of Ampleforth i.e., Ampleforth and PancakeSwap go up and down completely randomly.

Pair Corralation between Ampleforth and PancakeSwap

Assuming the 90 days trading horizon Ampleforth is expected to generate 1.26 times more return on investment than PancakeSwap. However, Ampleforth is 1.26 times more volatile than PancakeSwap. It trades about -0.01 of its potential returns per unit of risk. PancakeSwap is currently generating about -0.12 per unit of risk. If you would invest  166.00  in Ampleforth on February 19, 2022 and sell it today you would lose (75.00)  from holding Ampleforth or give up 45.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ampleforth  vs.  PancakeSwap

 Performance (%) 
      Timeline 
Ampleforth 
Ampleforth Performance
0 of 100
Over the last 90 days Ampleforth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ampleforth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ampleforth Price Channel

PancakeSwap 
PancakeSwap Performance
0 of 100
Over the last 90 days PancakeSwap 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 forward-looking signals 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 PancakeSwap investors.

PancakeSwap Price Channel

Ampleforth and PancakeSwap Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Ampleforth and PancakeSwap

The main advantage of trading using opposite Ampleforth and PancakeSwap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampleforth position performs unexpectedly, PancakeSwap 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 PancakeSwap will offset losses from the drop in PancakeSwap's long position.
The idea behind Ampleforth and PancakeSwap 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
CEO Directory
Screen CEOs from public companies around the world
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
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