Correlation Between VTEX and Amplitude

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

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

Diversification Opportunities for VTEX and Amplitude

0.13

Correlation Coefficient

VTEX  Amplitude

Average diversification

The 3 months correlation between VTEX and Amplitude is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding VTEX and Amplitude in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude and VTEX 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 VTEX are associated (or correlated) with Amplitude. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude has no effect on the direction of VTEX i.e., VTEX and Amplitude go up and down completely randomly.

Pair Corralation between VTEX and Amplitude

Given the investment horizon of 90 days VTEX is expected to under-perform the Amplitude. In addition to that, VTEX is 1.11 times more volatile than Amplitude. It trades about -0.01 of its total potential returns per unit of risk. Amplitude is currently generating about 0.0 per unit of volatility. If you would invest  1,133  in Amplitude on September 8, 2025 and sell it today you would lose (17.00) from holding Amplitude or give up 1.5% of portfolio value over 90 days.

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

VTEX  vs.  Amplitude

VTEX

Risk-Adjusted Performance

Weakest

Over the last 90 days VTEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, VTEX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amplitude

Risk-Adjusted Performance

Weakest

Over the last 90 days Amplitude has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Amplitude is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with VTEX and Amplitude

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

The idea behind VTEX and Amplitude 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.