Correlation Between AMG Advanced and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Roebuck Food 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 Roebuck Food 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 Roebuck Food Group, you can compare the effects of market volatilities on AMG Advanced and Roebuck Food 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 Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Roebuck Food.
Diversification Opportunities for AMG Advanced and Roebuck Food
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMG and Roebuck is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group 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 Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of AMG Advanced i.e., AMG Advanced and Roebuck Food go up and down completely randomly.
Pair Corralation between AMG Advanced and Roebuck Food
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Roebuck Food. In addition to that, AMG Advanced is 1.83 times more volatile than Roebuck Food Group. It trades about -0.05 of its total potential returns per unit of risk. Roebuck Food Group is currently generating about 0.06 per unit of volatility. If you would invest 1,400 in Roebuck Food Group on September 5, 2024 and sell it today you would earn a total of 280.00 from holding Roebuck Food Group or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Roebuck Food Group
Performance |
| Timeline |
| AMG Advanced Metallu |
| Roebuck Food Group |
AMG Advanced and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Roebuck Food
The main advantage of trading using opposite AMG Advanced and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Hyundai Motor | AMG Advanced vs. Toyota Motor Corp |
| Roebuck Food vs. Samsung Electronics Co | Roebuck Food vs. Samsung Electronics Co | Roebuck Food vs. Hyundai Motor | Roebuck Food vs. Toyota Motor Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |