Correlation Between AMG Advanced and G5 Entertainment
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and G5 Entertainment 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 AMG Advanced and G5 Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and G5 Entertainment AB, you can compare the effects of market volatilities on AMG Advanced and G5 Entertainment 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 AMG Advanced with a short position of G5 Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and G5 Entertainment.
Diversification Opportunities for AMG Advanced and G5 Entertainment
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMG and 0QUS is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and G5 Entertainment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G5 Entertainment and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with G5 Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G5 Entertainment has no effect on the direction of AMG Advanced i.e., AMG Advanced and G5 Entertainment go up and down completely randomly.
Pair Corralation between AMG Advanced and G5 Entertainment
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the G5 Entertainment. In addition to that, AMG Advanced is 1.01 times more volatile than G5 Entertainment AB. It trades about -0.07 of its total potential returns per unit of risk. G5 Entertainment AB is currently generating about 0.01 per unit of volatility. If you would invest 10,840 in G5 Entertainment AB on September 12, 2024 and sell it today you would earn a total of 20.00 from holding G5 Entertainment AB or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. G5 Entertainment AB
Performance |
| Timeline |
| AMG Advanced Metallu |
| G5 Entertainment |
AMG Advanced and G5 Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and G5 Entertainment
The main advantage of trading using opposite AMG Advanced and G5 Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, G5 Entertainment 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 G5 Entertainment will offset losses from the drop in G5 Entertainment's long position.| AMG Advanced vs. Neometals | AMG Advanced vs. Bisichi Mining PLC | AMG Advanced vs. Playtech Plc | AMG Advanced vs. Metals Exploration Plc |
| G5 Entertainment vs. Tatton Asset Management | G5 Entertainment vs. Melia Hotels | G5 Entertainment vs. Litigation Capital Management | G5 Entertainment vs. Host Hotels Resorts |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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