Correlation Between Cosmos and Amp

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

Diversification Opportunities for Cosmos and Amp

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Cosmos and Amp is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos and Amp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Amp and Cosmos 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 Cosmos are associated (or correlated) with Amp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amp has no effect on the direction of Cosmos i.e., Cosmos and Amp go up and down completely randomly.

Pair Corralation between Cosmos and Amp

Assuming the 90 days trading horizon Cosmos is expected to under-perform the Amp. But the crypto coin apears to be less risky and, when comparing its historical volatility, Cosmos is 1.13 times less risky than Amp. The crypto coin trades about -0.44 of its potential returns per unit of risk. The Amp is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  2.22  in Amp on February 15, 2022 and sell it today you would lose (0.84)  from holding Amp or give up 37.84% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Cosmos  vs.  Amp

 Performance (%) 
      Timeline 
Cosmos 
Cosmos Performance
0 of 100
Over the last 90 days Cosmos 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 basic 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 Cosmos investors.

Cosmos Price Channel

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

Cosmos and Amp Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cosmos and Amp

The main advantage of trading using opposite Cosmos and Amp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos position performs unexpectedly, Amp 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 Amp will offset losses from the drop in Amp's long position.
The idea behind Cosmos and Amp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
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
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go