Correlation Between AMG Advanced and Las Vegas
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Las Vegas 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 Las Vegas 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 Las Vegas Sands, you can compare the effects of market volatilities on AMG Advanced and Las Vegas 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 Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Las Vegas.
Diversification Opportunities for AMG Advanced and Las Vegas
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMG and Las is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands 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 Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of AMG Advanced i.e., AMG Advanced and Las Vegas go up and down completely randomly.
Pair Corralation between AMG Advanced and Las Vegas
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Las Vegas. In addition to that, AMG Advanced is 1.33 times more volatile than Las Vegas Sands. It trades about -0.04 of its total potential returns per unit of risk. Las Vegas Sands is currently generating about 0.01 per unit of volatility. If you would invest 4,843 in Las Vegas Sands on October 11, 2024 and sell it today you would earn a total of 68.00 from holding Las Vegas Sands or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Las Vegas Sands
Performance |
| Timeline |
| AMG Advanced Metallu |
| Las Vegas Sands |
AMG Advanced and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Las Vegas
The main advantage of trading using opposite AMG Advanced and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| AMG Advanced vs. Vitec Software Group | AMG Advanced vs. Take Two Interactive Software | AMG Advanced vs. Primorus Investments plc | AMG Advanced vs. FC Investment Trust |
| Las Vegas vs. Associated British Foods | Las Vegas vs. Gear4music Plc | Las Vegas vs. Games Workshop Group | Las Vegas vs. Gaming Realms plc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |