Correlation Between Amg Gwk and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Amg Yacktman 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 Gwk and Amg Yacktman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Small and Amg Yacktman Special, you can compare the effects of market volatilities on Amg Gwk and Amg Yacktman 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 Gwk with a short position of Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Amg Yacktman.
Diversification Opportunities for Amg Gwk and Amg Yacktman
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Amg is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Small and Amg Yacktman Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Special and Amg Gwk 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 Gwk Small are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Special has no effect on the direction of Amg Gwk i.e., Amg Gwk and Amg Yacktman go up and down completely randomly.
Pair Corralation between Amg Gwk and Amg Yacktman
Assuming the 90 days horizon Amg Gwk Small is expected to generate 1.61 times more return on investment than Amg Yacktman. However, Amg Gwk is 1.61 times more volatile than Amg Yacktman Special. It trades about 0.1 of its potential returns per unit of risk. Amg Yacktman Special is currently generating about 0.06 per unit of risk. If you would invest 2,843 in Amg Gwk Small on September 3, 2024 and sell it today you would earn a total of 879.00 from holding Amg Gwk Small or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Gwk Small vs. Amg Yacktman Special
Performance |
| Timeline |
| Amg Gwk Small |
| Amg Yacktman Special |
Amg Gwk and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Amg Yacktman
The main advantage of trading using opposite Amg Gwk and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Amg Yacktman 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 Yacktman will offset losses from the drop in Amg Yacktman's long position.| Amg Gwk vs. T Rowe Price | Amg Gwk vs. Amg Gwk Small | Amg Gwk vs. Aberdeen Emerging Markts | Amg Gwk vs. Invesco Disciplined Equity |
| Amg Yacktman vs. International Investors Gold | Amg Yacktman vs. Global Gold Fund | Amg Yacktman vs. Goldman Sachs Clean | Amg Yacktman vs. Franklin Gold Precious |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |