Correlation Between AMG Advanced and Pan Global
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Pan Global 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 Pan Global 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 Pan Global Resources, you can compare the effects of market volatilities on AMG Advanced and Pan Global 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 Pan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Pan Global.
Diversification Opportunities for AMG Advanced and Pan Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMG and Pan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Pan Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Global Resources 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 Pan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Global Resources has no effect on the direction of AMG Advanced i.e., AMG Advanced and Pan Global go up and down completely randomly.
Pair Corralation between AMG Advanced and Pan Global
Assuming the 90 days horizon AMG Advanced is expected to generate 2.25 times less return on investment than Pan Global. But when comparing it to its historical volatility, AMG Advanced Metallurgical is 1.76 times less risky than Pan Global. It trades about 0.21 of its potential returns per unit of risk. Pan Global Resources is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 7.07 in Pan Global Resources on October 24, 2024 and sell it today you would earn a total of 2.81 from holding Pan Global Resources or generate 39.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Pan Global Resources
Performance |
| Timeline |
| AMG Advanced Metallu |
| Pan Global Resources |
AMG Advanced and Pan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Pan Global
The main advantage of trading using opposite AMG Advanced and Pan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Pan Global 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 Pan Global will offset losses from the drop in Pan Global's long position.| AMG Advanced vs. Huntsman Exploration | AMG Advanced vs. Aurelia Metals Limited | AMG Advanced vs. Adriatic Metals PLC | AMG Advanced vs. American Helium |
| Pan Global vs. Li Auto | Pan Global vs. Tianjin Capital Environmental | Pan Global vs. Lucid Group | Pan Global vs. HUHUTECH International 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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