Correlation Between Sycamore Entmt and AMPL

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

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

Diversification Opportunities for Sycamore Entmt and AMPL

-0.23

Correlation Coefficient

Sycamore Entmt  AMPL

Very good diversification

The 3 months correlation between Sycamore and AMPL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp and AMPL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPL and Sycamore Entmt 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 Sycamore Entmt Grp 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 Sycamore Entmt i.e., Sycamore Entmt and AMPL go up and down completely randomly.

Pair Corralation between Sycamore Entmt and AMPL

Given the investment horizon of 90 days Sycamore Entmt Grp is expected to under-perform the AMPL. In addition to that, Sycamore Entmt is 1.83 times more volatile than AMPL. It trades about -0.01 of its total potential returns per unit of risk. AMPL is currently generating about 0.05 per unit of volatility. If you would invest  105.00  in AMPL on May 19, 2025 and sell it today you would earn a total of  9.00  from holding AMPL or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Sycamore Entmt Grp  vs.  AMPL

Sycamore Entmt Grp

Risk-Adjusted Performance

Weakest

Over the last 90 days Sycamore Entmt Grp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Sycamore Entmt is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

AMPL

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in AMPL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, AMPL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sycamore Entmt and AMPL

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

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.