Correlation Between Global Gold and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Global Gold and Amg Yacktman 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 Global Gold and Amg Yacktman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Amg Yacktman Special, you can compare the effects of market volatilities on Global Gold and Amg Yacktman 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 Global Gold with a short position of Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Amg Yacktman.
Diversification Opportunities for Global Gold and Amg Yacktman
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Amg is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Amg Yacktman Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Special and Global Gold 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 Global Gold Fund are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Special has no effect on the direction of Global Gold i.e., Global Gold and Amg Yacktman go up and down completely randomly.
Pair Corralation between Global Gold and Amg Yacktman
Assuming the 90 days horizon Global Gold Fund is expected to generate 2.53 times more return on investment than Amg Yacktman. However, Global Gold is 2.53 times more volatile than Amg Yacktman Special. It trades about 0.07 of its potential returns per unit of risk. Amg Yacktman Special is currently generating about 0.06 per unit of risk. If you would invest 1,332 in Global Gold Fund on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Global Gold Fund or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global Gold Fund vs. Amg Yacktman Special
Performance |
| Timeline |
| Global Gold Fund |
| Amg Yacktman Special |
Global Gold and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Amg Yacktman
The main advantage of trading using opposite Global Gold and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Amg Yacktman 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 Yacktman will offset losses from the drop in Amg Yacktman's long position.| Global Gold vs. Sa Worldwide Moderate | Global Gold vs. Putnman Retirement Ready | Global Gold vs. Pro Blend Moderate Term | Global Gold vs. Franklin Lifesmart Retirement |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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