Correlation Between Gamco Global and Amg River
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Amg River 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 Gamco Global and Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Telecommunications and Amg River Road, you can compare the effects of market volatilities on Gamco Global and Amg River 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 Gamco Global with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Amg River.
Diversification Opportunities for Gamco Global and Amg River
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gamco and Amg is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Telecommunication and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Gamco Global 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 Gamco Global Telecommunications are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Gamco Global i.e., Gamco Global and Amg River go up and down completely randomly.
Pair Corralation between Gamco Global and Amg River
Assuming the 90 days horizon Gamco Global is expected to generate 1.45 times less return on investment than Amg River. In addition to that, Gamco Global is 1.17 times more volatile than Amg River Road. It trades about 0.12 of its total potential returns per unit of risk. Amg River Road is currently generating about 0.2 per unit of volatility. If you would invest 965.00 in Amg River Road on September 2, 2024 and sell it today you would earn a total of 166.00 from holding Amg River Road or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Telecommunication vs. Amg River Road
Performance |
| Timeline |
| Gamco Global Telecom |
| Amg River Road |
Gamco Global and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Amg River
The main advantage of trading using opposite Gamco Global and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Amg River 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 River will offset losses from the drop in Amg River's long position.| 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 |
| Amg River vs. Pear Tree Polaris | Amg River vs. Artisan Global Value | Amg River vs. Amg River Road | Amg River vs. Tcw Relative Value |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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