Correlation Between Aamg Funds and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Aamg Funds and Amg Gwk 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 Aamg Funds and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamg Funds Iv and Amg Gwk Municipal, you can compare the effects of market volatilities on Aamg Funds and Amg Gwk 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 Aamg Funds with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamg Funds and Amg Gwk.
Diversification Opportunities for Aamg Funds and Amg Gwk
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aamg and Amg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aamg Funds Iv and Amg Gwk Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Municipal and Aamg Funds 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 Aamg Funds Iv are associated (or correlated) with Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Municipal has no effect on the direction of Aamg Funds i.e., Aamg Funds and Amg Gwk go up and down completely randomly.
Pair Corralation between Aamg Funds and Amg Gwk
Assuming the 90 days horizon Aamg Funds Iv is expected to generate 3.44 times more return on investment than Amg Gwk. However, Aamg Funds is 3.44 times more volatile than Amg Gwk Municipal. It trades about 0.24 of its potential returns per unit of risk. Amg Gwk Municipal is currently generating about 0.1 per unit of risk. If you would invest 1,810 in Aamg Funds Iv on August 27, 2024 and sell it today you would earn a total of 132.00 from holding Aamg Funds Iv or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aamg Funds Iv vs. Amg Gwk Municipal
Performance |
| Timeline |
| Aamg Funds Iv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Amg Gwk Municipal |
Aamg Funds and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aamg Funds and Amg Gwk
The main advantage of trading using opposite Aamg Funds and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamg Funds position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| Aamg Funds vs. Janus Global Technology | Aamg Funds vs. Towpath Technology | Aamg Funds vs. Technology Ultrasector Profund | Aamg Funds vs. Icon Information Technology |
| Amg Gwk vs. Amg Gwk Municipal | Amg Gwk vs. Amg Managers Doubleline | Amg Gwk vs. Oppenheimer Rochester Amt Free | Amg Gwk vs. Columbia Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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