Correlation Between GENTING SG and Ares Management
Can any of the company-specific risk be diversified away by investing in both GENTING SG and Ares Management 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 GENTING SG and Ares Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GENTING SG LTD and Ares Management Corp, you can compare the effects of market volatilities on GENTING SG and Ares Management 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 GENTING SG with a short position of Ares Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENTING SG and Ares Management.
Diversification Opportunities for GENTING SG and Ares Management
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GENTING and Ares is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding GENTING SG LTD and Ares Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Management Corp and GENTING SG 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 GENTING SG LTD are associated (or correlated) with Ares Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Management Corp has no effect on the direction of GENTING SG i.e., GENTING SG and Ares Management go up and down completely randomly.
Pair Corralation between GENTING SG and Ares Management
Assuming the 90 days horizon GENTING SG LTD is expected to under-perform the Ares Management. In addition to that, GENTING SG is 1.11 times more volatile than Ares Management Corp. It trades about -0.03 of its total potential returns per unit of risk. Ares Management Corp is currently generating about 0.17 per unit of volatility. If you would invest 13,091 in Ares Management Corp on September 3, 2024 and sell it today you would earn a total of 3,361 from holding Ares Management Corp or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GENTING SG LTD vs. Ares Management Corp
Performance |
| Timeline |
| GENTING SG LTD |
| Ares Management Corp |
GENTING SG and Ares Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENTING SG and Ares Management
The main advantage of trading using opposite GENTING SG and Ares Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENTING SG position performs unexpectedly, Ares Management 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 Ares Management will offset losses from the drop in Ares Management's long position.| GENTING SG vs. Ares Management Corp | GENTING SG vs. SPORTING | GENTING SG vs. TITANIUM TRANSPORTGROUP | GENTING SG vs. EHEALTH |
| Ares Management vs. Blackstone Group | Ares Management vs. BlackRock | Ares Management vs. The Bank of | Ares Management vs. Ameriprise Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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