Correlation Between Amg Gwk and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Amg Managers 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 Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Smallmid and Amg Managers Montag, you can compare the effects of market volatilities on Amg Gwk and Amg Managers 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 Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Amg Managers.
Diversification Opportunities for Amg Gwk and Amg Managers
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMG and Amg is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Smallmid and Amg Managers Montag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Montag 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 Smallmid are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Montag has no effect on the direction of Amg Gwk i.e., Amg Gwk and Amg Managers go up and down completely randomly.
Pair Corralation between Amg Gwk and Amg Managers
Assuming the 90 days horizon Amg Gwk Smallmid is expected to generate 1.57 times more return on investment than Amg Managers. However, Amg Gwk is 1.57 times more volatile than Amg Managers Montag. It trades about 0.33 of its potential returns per unit of risk. Amg Managers Montag is currently generating about 0.2 per unit of risk. If you would invest 1,875 in Amg Gwk Smallmid on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Amg Gwk Smallmid or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Gwk Smallmid vs. Amg Managers Montag
Performance |
| Timeline |
| Amg Gwk Smallmid |
| Amg Managers Montag |
Amg Gwk and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Amg Managers
The main advantage of trading using opposite Amg Gwk and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Amg Managers 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 Managers will offset losses from the drop in Amg Managers' long position.| Amg Gwk vs. Jhancock Short Duration | Amg Gwk vs. Federated Ultrashort Bond | Amg Gwk vs. Aqr Long Short Equity | Amg Gwk vs. Sterling Capital Short |
| Amg Managers vs. Amg Southernsun Equity | Amg Managers vs. Amg Southernsun Equity | Amg Managers vs. Amg Fq Long Short | Amg Managers vs. Amg Southernsun Small |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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