Correlation Between Investment Managers and AMPL
Can any of the company-specific risk be diversified away by investing in both Investment Managers and AMPL 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 Investment Managers and AMPL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Managers Series and AMPL, you can compare the effects of market volatilities on Investment Managers and AMPL 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 Investment Managers with a short position of AMPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Managers and AMPL.
Diversification Opportunities for Investment Managers and AMPL
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Investment and AMPL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Investment Managers Series and AMPL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPL and Investment Managers 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 Investment Managers Series are associated (or correlated) with AMPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPL has no effect on the direction of Investment Managers i.e., Investment Managers and AMPL go up and down completely randomly.
Pair Corralation between Investment Managers and AMPL
Considering the 90-day investment horizon Investment Managers is expected to generate 3.91 times less return on investment than AMPL. But when comparing it to its historical volatility, Investment Managers Series is 10.28 times less risky than AMPL. It trades about 0.16 of its potential returns per unit of risk. AMPL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 116.00 in AMPL on May 27, 2025 and sell it today you would earn a total of 16.00 from holding AMPL or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Investment Managers Series vs. AMPL
Performance |
| Timeline |
| Investment Managers |
| AMPL |
Investment Managers and AMPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Managers and AMPL
The main advantage of trading using opposite Investment Managers and AMPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Managers position performs unexpectedly, AMPL 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 AMPL will offset losses from the drop in AMPL's long position.| Investment Managers vs. Strategy Shares | Investment Managers vs. Freedom Day Dividend | Investment Managers vs. iShares MSCI China | Investment Managers vs. iShares Dividend and |
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 the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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