Correlation Between Guidepath Managed and Aamhimco Short
Can any of the company-specific risk be diversified away by investing in both Guidepath Managed and Aamhimco Short 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 Guidepath Managed and Aamhimco Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Aamhimco Short Duration, you can compare the effects of market volatilities on Guidepath Managed and Aamhimco Short 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 Guidepath Managed with a short position of Aamhimco Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Managed and Aamhimco Short.
Diversification Opportunities for Guidepath Managed and Aamhimco Short
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidepath and Aamhimco is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures and Aamhimco Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamhimco Short Duration and Guidepath Managed 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 Guidepath Managed Futures are associated (or correlated) with Aamhimco Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamhimco Short Duration has no effect on the direction of Guidepath Managed i.e., Guidepath Managed and Aamhimco Short go up and down completely randomly.
Pair Corralation between Guidepath Managed and Aamhimco Short
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Aamhimco Short. In addition to that, Guidepath Managed is 8.2 times more volatile than Aamhimco Short Duration. It trades about -0.02 of its total potential returns per unit of risk. Aamhimco Short Duration is currently generating about 0.27 per unit of volatility. If you would invest 940.00 in Aamhimco Short Duration on September 15, 2024 and sell it today you would earn a total of 61.00 from holding Aamhimco Short Duration or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Aamhimco Short Duration
Performance |
| Timeline |
| Guidepath Managed Futures |
| Aamhimco Short Duration |
Guidepath Managed and Aamhimco Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath Managed and Aamhimco Short
The main advantage of trading using opposite Guidepath Managed and Aamhimco Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Managed position performs unexpectedly, Aamhimco Short 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 Aamhimco Short will offset losses from the drop in Aamhimco Short's long position.| Guidepath Managed vs. Guidepath Absolute Return | Guidepath Managed vs. Guidepath Conservative Income | Guidepath Managed vs. Guidepath Flexible Income | Guidepath Managed vs. Guidepath Growth And |
| Aamhimco Short vs. Short Duration Inflation | Aamhimco Short vs. Ab Bond Inflation | Aamhimco Short vs. Guidepath Managed Futures | Aamhimco Short vs. Ab Bond Inflation |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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