Correlation Between Bbh Intermediate and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Amg Gwk 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 Bbh Intermediate and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Amg Gwk Smallmid, you can compare the effects of market volatilities on Bbh Intermediate and Amg Gwk 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 Bbh Intermediate with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Amg Gwk.
Diversification Opportunities for Bbh Intermediate and Amg Gwk
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and Amg is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Amg Gwk go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Amg Gwk
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.13 times more return on investment than Amg Gwk. However, Bbh Intermediate Municipal is 7.94 times less risky than Amg Gwk. It trades about 0.34 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about -0.03 per unit of risk. If you would invest 1,029 in Bbh Intermediate Municipal on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Bbh Intermediate Municipal or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Amg Gwk Smallmid
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Amg Gwk Smallmid |
Bbh Intermediate and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Amg Gwk
The main advantage of trading using opposite Bbh Intermediate and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| Bbh Intermediate vs. Dreyfus Technology Growth | Bbh Intermediate vs. Red Oak Technology | Bbh Intermediate vs. Biotechnology Ultrasector Profund | Bbh Intermediate vs. Towpath Technology |
| Amg Gwk vs. Dws Emerging Markets | Amg Gwk vs. Pnc Emerging Markets | Amg Gwk vs. Rbc Emerging Markets | Amg Gwk vs. Origin Emerging Markets |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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