Correlation Between Tether and Amp

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

Diversification Opportunities for Tether and Amp

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Tether and Amp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tether and Amp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amp and Tether 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 Tether 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 Tether i.e., Tether and Amp go up and down completely randomly.

Pair Corralation between Tether and Amp

If you would invest (100.00)  in Amp on April 5, 2022 and sell it today you would earn a total of  100.00  from holding Amp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Tether  vs.  Amp

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

Tether 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 August 2022. The current disturbance may also be a sign of long term up-swing for Amp investors.

Tether and Amp Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Tether and Amp

The main advantage of trading using opposite Tether and Amp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tether 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 Tether 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.

Amp

Pair trading matchups for Amp

BP PLC vs. Amp
Cyclacel Pharmaceuti vs. Amp
International Business vs. Amp
Visa vs. Amp
GLAXOSMITHKLINE PLC vs. Amp
ATT vs. Amp
RENEWI PLC vs. Amp
Calyxt vs. Amp
Alzamend Neuro vs. Amp
Solo Brands vs. Amp
Vmware vs. Amp
Novan vs. Amp
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Amp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Amp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Amp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Amp.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go