Correlation Between AMG Advanced and Henry Boot
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Henry Boot 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 Henry Boot 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 Henry Boot PLC, you can compare the effects of market volatilities on AMG Advanced and Henry Boot 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 Henry Boot. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Henry Boot.
Diversification Opportunities for AMG Advanced and Henry Boot
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMG and Henry is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Henry Boot PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Boot PLC 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 Henry Boot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Boot PLC has no effect on the direction of AMG Advanced i.e., AMG Advanced and Henry Boot go up and down completely randomly.
Pair Corralation between AMG Advanced and Henry Boot
If you would invest 76.00 in Henry Boot PLC on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Henry Boot PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Henry Boot PLC
Performance |
| Timeline |
| AMG Advanced Metallu |
| Henry Boot PLC |
AMG Advanced and Henry Boot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Henry Boot
The main advantage of trading using opposite AMG Advanced and Henry Boot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Henry Boot 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 Henry Boot will offset losses from the drop in Henry Boot's long position.| AMG Advanced vs. Neometals | AMG Advanced vs. Coor Service Management | AMG Advanced vs. Aeorema Communications Plc | AMG Advanced vs. JLEN Environmental Assets |
| Henry Boot vs. Thor Mining PLC | Henry Boot vs. GoldMining | Henry Boot vs. AMG Advanced Metallurgical | Henry Boot vs. Hochschild Mining 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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