Correlation Between Ares Management and AMP
Can any of the company-specific risk be diversified away by investing in both Ares Management and AMP 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 Ares Management and AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Management LP and AMP, you can compare the effects of market volatilities on Ares Management and AMP 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 Ares Management with a short position of AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Management and AMP.
Diversification Opportunities for Ares Management and AMP
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ares and AMP is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ares Management LP and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP and Ares Management 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 Ares Management LP are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of Ares Management i.e., Ares Management and AMP go up and down completely randomly.
Pair Corralation between Ares Management and AMP
If you would invest 16,768 in Ares Management LP on September 1, 2024 and sell it today you would earn a total of 905.00 from holding Ares Management LP or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ares Management LP vs. AMP
Performance |
| Timeline |
| Ares Management LP |
| AMP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ares Management and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ares Management and AMP
The main advantage of trading using opposite Ares Management and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Management position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| Ares Management vs. KKR Co LP | Ares Management vs. Carlyle Group | Ares Management vs. Blackstone Group | Ares Management vs. Blue Owl Capital |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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