Correlation Between Amg River and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both Amg River and Gateway Fund 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 Gateway Fund 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 Gateway Fund Class, you can compare the effects of market volatilities on Amg River and Gateway Fund 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 Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Gateway Fund.
Diversification Opportunities for Amg River and Gateway Fund
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Gateway is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class 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 Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of Amg River i.e., Amg River and Gateway Fund go up and down completely randomly.
Pair Corralation between Amg River and Gateway Fund
Assuming the 90 days horizon Amg River is expected to generate 1.02 times less return on investment than Gateway Fund. In addition to that, Amg River is 2.11 times more volatile than Gateway Fund Class. It trades about 0.1 of its total potential returns per unit of risk. Gateway Fund Class is currently generating about 0.21 per unit of volatility. If you would invest 4,664 in Gateway Fund Class on September 15, 2024 and sell it today you would earn a total of 68.00 from holding Gateway Fund Class or generate 1.46% 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. Gateway Fund Class
Performance |
| Timeline |
| Amg River Road |
| Gateway Fund Class |
Amg River and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Gateway Fund
The main advantage of trading using opposite Amg River and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| Amg River vs. Victory Trivalent International | Amg River vs. Deutsche Global Real | Amg River vs. Mfs International Growth | Amg River vs. Jpmorgan Large Cap |
| Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Asg Managed Futures | Gateway Fund vs. Natixis Oakmark | Gateway Fund vs. Natixis Oakmark International |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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