Correlation Between Amg Gwk and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Huber Capital 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 Huber Capital 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 Huber Capital Small, you can compare the effects of market volatilities on Amg Gwk and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Huber Capital.
Diversification Opportunities for Amg Gwk and Huber Capital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Huber is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Small and Huber Capital Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Small 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Small has no effect on the direction of Amg Gwk i.e., Amg Gwk and Huber Capital go up and down completely randomly.
Pair Corralation between Amg Gwk and Huber Capital
Assuming the 90 days horizon Amg Gwk Small is expected to generate 0.97 times more return on investment than Huber Capital. However, Amg Gwk Small is 1.03 times less risky than Huber Capital. It trades about 0.09 of its potential returns per unit of risk. Huber Capital Small is currently generating about 0.08 per unit of risk. If you would invest 2,973 in Amg Gwk Small on November 3, 2024 and sell it today you would earn a total of 403.00 from holding Amg Gwk Small or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Gwk Small vs. Huber Capital Small
Performance |
| Timeline |
| Amg Gwk Small |
| Huber Capital Small |
Amg Gwk and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Huber Capital
The main advantage of trading using opposite Amg Gwk and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Amg Gwk vs. Amg Gwk Small | Amg Gwk vs. Aberdeen Small Cap | Amg Gwk vs. Poplar Forest Partners | Amg Gwk vs. Calvert Small Cap |
| Huber Capital vs. Absolute Convertible Arbitrage | Huber Capital vs. Putnam Convertible Securities | Huber Capital vs. Calamos Dynamic Convertible | Huber Capital vs. Advent Claymore Convertible |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |