Correlation Between Barloworld and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Barloworld and Amg Managers 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 Barloworld and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barloworld Ltd ADR and Amg Managers Montag, you can compare the effects of market volatilities on Barloworld and Amg Managers 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 Barloworld with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barloworld and Amg Managers.
Diversification Opportunities for Barloworld and Amg Managers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barloworld and Amg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barloworld Ltd ADR and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag and Barloworld 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 Barloworld Ltd ADR are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of Barloworld i.e., Barloworld and Amg Managers go up and down completely randomly.
Pair Corralation between Barloworld and Amg Managers
Assuming the 90 days horizon Barloworld Ltd ADR is expected to under-perform the Amg Managers. In addition to that, Barloworld is 3.26 times more volatile than Amg Managers Montag. It trades about -0.01 of its total potential returns per unit of risk. Amg Managers Montag is currently generating about 0.06 per unit of volatility. If you would invest 1,316 in Amg Managers Montag on September 1, 2024 and sell it today you would earn a total of 88.00 from holding Amg Managers Montag or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Barloworld Ltd ADR vs. Amg Managers Montag
Performance |
| Timeline |
| Barloworld ADR |
| Amg Managers Montag |
Barloworld and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barloworld and Amg Managers
The main advantage of trading using opposite Barloworld and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barloworld position performs unexpectedly, Amg Managers 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 Managers will offset losses from the drop in Amg Managers' long position.| Barloworld vs. Hertz Global Holdings | Barloworld vs. United Rentals | Barloworld vs. Ryder System | Barloworld vs. Herc Holdings |
| Amg Managers vs. Amg Southernsun Equity | Amg Managers vs. Amg Southernsun Equity | Amg Managers vs. Amg Fq Long Short | Amg Managers vs. Amg Southernsun Small |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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