Correlation Between Amg River and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Amg River and Gamco 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 River and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Gamco Global Telecommunications, you can compare the effects of market volatilities on Amg River and Gamco 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 River with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Gamco Global.
Diversification Opportunities for Amg River and Gamco Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Gamco is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom and Amg River 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 River Road are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Telecom has no effect on the direction of Amg River i.e., Amg River and Gamco Global go up and down completely randomly.
Pair Corralation between Amg River and Gamco Global
Assuming the 90 days horizon Amg River Road is expected to generate 1.26 times more return on investment than Gamco Global. However, Amg River is 1.26 times more volatile than Gamco Global Telecommunications. It trades about 0.33 of its potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.3 per unit of risk. If you would invest 1,079 in Amg River Road on September 2, 2024 and sell it today you would earn a total of 52.00 from holding Amg River Road or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Gamco Global Telecommunication
Performance |
| Timeline |
| Amg River Road |
| Gamco Global Telecom |
Amg River and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Gamco Global
The main advantage of trading using opposite Amg River and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Gamco 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| Amg River vs. Pear Tree Polaris | Amg River vs. Artisan Global Value | Amg River vs. Amg River Road | Amg River vs. Tcw Relative Value |
| Gamco Global vs. Calamos Short Term Bond | Gamco Global vs. T Rowe Price | Gamco Global vs. Versatile Bond Portfolio | Gamco Global vs. Inflation Protected Bond Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |