Correlation Between Dyadic International and Amphastar

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

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

Diversification Opportunities for Dyadic International and Amphastar

0.74

Correlation Coefficient

Dyadic International  Amphastar

Poor diversification

The 3 months correlation between Dyadic and Amphastar is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dyadic International and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Dyadic International 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 Dyadic International are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Dyadic International i.e., Dyadic International and Amphastar go up and down completely randomly.

Pair Corralation between Dyadic International and Amphastar

Given the investment horizon of 90 days Dyadic International is expected to generate 2.1 times more return on investment than Amphastar. However, Dyadic International is 2.1 times more volatile than Amphastar P. It trades about -0.06 of its potential returns per unit of risk. Amphastar P is currently generating about -0.18 per unit of risk. If you would invest  170.00  in Dyadic International on February 28, 2025 and sell it today you would lose (66.50) from holding Dyadic International or give up 39.12% of portfolio value over 90 days.

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

Dyadic International  vs.  Amphastar P

Dyadic International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dyadic International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Amphastar P

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Dyadic International and Amphastar

The main advantage of trading using opposite Dyadic International and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyadic International position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.

The idea behind Dyadic International and Amphastar P 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.