Correlation Between Auction and Ampleforth

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

Diversification Opportunities for Auction and Ampleforth

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Auction and Ampleforth is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Auction and Ampleforth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampleforth and Auction 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 Auction are associated (or correlated) with Ampleforth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampleforth has no effect on the direction of Auction i.e., Auction and Ampleforth go up and down completely randomly.

Pair Corralation between Auction and Ampleforth

Assuming the 90 days trading horizon Auction is expected to under-perform the Ampleforth. In addition to that, Auction is 1.13 times more volatile than Ampleforth. It trades about -0.11 of its total potential returns per unit of risk. Ampleforth is currently generating about -0.01 per unit of volatility. If you would invest  166.00  in Ampleforth on February 21, 2022 and sell it today you would lose (77.00)  from holding Ampleforth or give up 46.39% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.35%
ValuesDaily Returns

Auction  vs.  Ampleforth

 Performance (%) 
      Timeline 
Auction 
Auction Performance
0 of 100
Over the last 90 days Auction 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 indicators remain quite persistent which may send shares a bit higher in June 2022. The latest mess may also be a sign of long-standing up-swing for Auction institutional investors.

Auction Price Channel

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

Auction and Ampleforth Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Auction and Ampleforth

The main advantage of trading using opposite Auction and Ampleforth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction position performs unexpectedly, Ampleforth 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 Ampleforth will offset losses from the drop in Ampleforth's long position.
The idea behind Auction and Ampleforth 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go