Correlation Between BLZ and AMPL

Can any of the company-specific risk be diversified away by investing in both BLZ 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 BLZ and AMPL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BLZ and AMPL, you can compare the effects of market volatilities on BLZ 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 BLZ with a short position of AMPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLZ and AMPL.

Diversification Opportunities for BLZ and AMPL

-0.08

Correlation Coefficient

BLZ  AMPL

Good diversification

The 3 months correlation between BLZ and AMPL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BLZ and AMPL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPL and BLZ 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 BLZ 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 BLZ i.e., BLZ and AMPL go up and down completely randomly.

Pair Corralation between BLZ and AMPL

Assuming the 90 days trading horizon BLZ is expected to generate 1.63 times less return on investment than AMPL. But when comparing it to its historical volatility, BLZ is 1.62 times less risky than AMPL. It trades about 0.02 of its potential returns per unit of risk. AMPL is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  118.00  in AMPL on April 29, 2025 and sell it today you would lose (5.00) from holding AMPL or give up 4.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BLZ  vs.  AMPL

BLZ

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BLZ are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, BLZ is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

AMPL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AMPL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, AMPL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BLZ and AMPL

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

The idea behind BLZ and AMPL 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 the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.