Correlation Between AMG Advanced and Invesco Physical
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Invesco Physical 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 Invesco Physical 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 Invesco Physical Gold, you can compare the effects of market volatilities on AMG Advanced and Invesco Physical 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 Invesco Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Invesco Physical.
Diversification Opportunities for AMG Advanced and Invesco Physical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMG and Invesco is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Invesco Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Physical Gold 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 Invesco Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Physical Gold has no effect on the direction of AMG Advanced i.e., AMG Advanced and Invesco Physical go up and down completely randomly.
Pair Corralation between AMG Advanced and Invesco Physical
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Invesco Physical. In addition to that, AMG Advanced is 1.55 times more volatile than Invesco Physical Gold. It trades about -0.15 of its total potential returns per unit of risk. Invesco Physical Gold is currently generating about 0.02 per unit of volatility. If you would invest 24,239 in Invesco Physical Gold on September 4, 2024 and sell it today you would earn a total of 64.00 from holding Invesco Physical Gold or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Invesco Physical Gold
Performance |
| Timeline |
| AMG Advanced Metallu |
| Invesco Physical Gold |
AMG Advanced and Invesco Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Invesco Physical
The main advantage of trading using opposite AMG Advanced and Invesco Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Invesco Physical 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 Invesco Physical will offset losses from the drop in Invesco Physical'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 |
| Invesco Physical vs. Allfunds Group | Invesco Physical vs. Vastned Retail NV | Invesco Physical vs. Tetragon Financial Group | Invesco Physical vs. Universal Music Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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