Correlation Between Amg Gwk and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Amg Southernsun 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 Southernsun 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 Southernsun Equity, you can compare the effects of market volatilities on Amg Gwk and Amg Southernsun 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 Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Amg Southernsun.
Diversification Opportunities for Amg Gwk and Amg Southernsun
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Amg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Small and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity 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 Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Amg Gwk i.e., Amg Gwk and Amg Southernsun go up and down completely randomly.
Pair Corralation between Amg Gwk and Amg Southernsun
Assuming the 90 days horizon Amg Gwk Small is expected to generate 0.68 times more return on investment than Amg Southernsun. However, Amg Gwk Small is 1.46 times less risky than Amg Southernsun. It trades about 0.06 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about -0.05 per unit of risk. If you would invest 3,322 in Amg Gwk Small on November 1, 2024 and sell it today you would earn a total of 148.00 from holding Amg Gwk Small or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Amg Gwk Small vs. Amg Southernsun Equity
Performance |
| Timeline |
| Amg Gwk Small |
| Amg Southernsun Equity |
Amg Gwk and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Amg Southernsun
The main advantage of trading using opposite Amg Gwk and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Amg Southernsun 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 Southernsun will offset losses from the drop in Amg Southernsun's long position.| Amg Gwk vs. Intermediate Term Tax Free Bond | Amg Gwk vs. Prudential California Muni | Amg Gwk vs. Franklin Adjustable Government | Amg Gwk vs. Dunham Porategovernment Bond |
| Amg Southernsun vs. Calamos Dynamic Convertible | Amg Southernsun vs. Fidelity Sai Convertible | Amg Southernsun vs. Allianzgi Convertible Income | Amg Southernsun vs. Allianzgi Convertible Income |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |