Correlation Between AMG Advanced and BenevolentAI
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and BenevolentAI 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 BenevolentAI 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 BenevolentAI SA, you can compare the effects of market volatilities on AMG Advanced and BenevolentAI 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 BenevolentAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and BenevolentAI.
Diversification Opportunities for AMG Advanced and BenevolentAI
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and BenevolentAI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and BenevolentAI SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenevolentAI SA 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 BenevolentAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenevolentAI SA has no effect on the direction of AMG Advanced i.e., AMG Advanced and BenevolentAI go up and down completely randomly.
Pair Corralation between AMG Advanced and BenevolentAI
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 0.76 times more return on investment than BenevolentAI. However, AMG Advanced Metallurgical is 1.32 times less risky than BenevolentAI. It trades about -0.12 of its potential returns per unit of risk. BenevolentAI SA is currently generating about -0.19 per unit of risk. If you would invest 1,578 in AMG Advanced Metallurgical on August 24, 2024 and sell it today you would lose (81.00) from holding AMG Advanced Metallurgical or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. BenevolentAI SA
Performance |
| Timeline |
| AMG Advanced Metallu |
| BenevolentAI SA |
AMG Advanced and BenevolentAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and BenevolentAI
The main advantage of trading using opposite AMG Advanced and BenevolentAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, BenevolentAI 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 BenevolentAI will offset losses from the drop in BenevolentAI's long position.| AMG Advanced vs. BE Semiconductor Industries | AMG Advanced vs. TKH Group NV | AMG Advanced vs. OCI NV | AMG Advanced vs. Aalberts Industries NV |
| BenevolentAI vs. Galapagos NV | BenevolentAI vs. Koninklijke BAM Groep | BenevolentAI vs. Fugro NV | BenevolentAI vs. PostNL NV |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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