Correlation Between 361 Global and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both 361 Global 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 361 Global and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Amg Gwk Smallmid, you can compare the effects of market volatilities on 361 Global 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 361 Global with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Amg Gwk.
Diversification Opportunities for 361 Global and Amg Gwk
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 361 and Amg is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid and 361 Global 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 361 Global Longshort 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 Smallmid has no effect on the direction of 361 Global i.e., 361 Global and Amg Gwk go up and down completely randomly.
Pair Corralation between 361 Global and Amg Gwk
Assuming the 90 days horizon 361 Global is expected to generate 6.59 times less return on investment than Amg Gwk. But when comparing it to its historical volatility, 361 Global Longshort is 2.28 times less risky than Amg Gwk. It trades about 0.04 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,755 in Amg Gwk Smallmid on September 5, 2024 and sell it today you would earn a total of 290.00 from holding Amg Gwk Smallmid or generate 16.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
361 Global Longshort vs. Amg Gwk Smallmid
Performance |
| Timeline |
| 361 Global Longshort |
| Amg Gwk Smallmid |
361 Global and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and Amg Gwk
The main advantage of trading using opposite 361 Global and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global 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.| 361 Global vs. Swan Defined Risk | 361 Global vs. Boston Partners Longshort | 361 Global vs. 361 Global Longshort | 361 Global vs. Aqr Long Short Equity |
| Amg Gwk vs. Touchstone Large Cap | Amg Gwk vs. Qs Large Cap | Amg Gwk vs. Aqr Large Cap | Amg Gwk vs. Dodge Cox Stock |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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