Correlation Between Amg Gwk and Barings Us
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Barings Us 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 Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Municipal and Barings High Yield, you can compare the effects of market volatilities on Amg Gwk and Barings Us 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 Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Barings Us.
Diversification Opportunities for Amg Gwk and Barings Us
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Barings is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Municipal and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield 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 Municipal are associated (or correlated) with Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Amg Gwk i.e., Amg Gwk and Barings Us go up and down completely randomly.
Pair Corralation between Amg Gwk and Barings Us
Assuming the 90 days horizon Amg Gwk is expected to generate 5.27 times less return on investment than Barings Us. In addition to that, Amg Gwk is 1.95 times more volatile than Barings High Yield. It trades about 0.01 of its total potential returns per unit of risk. Barings High Yield is currently generating about 0.12 per unit of volatility. If you would invest 803.00 in Barings High Yield on October 24, 2024 and sell it today you would earn a total of 11.00 from holding Barings High Yield or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Amg Gwk Municipal vs. Barings High Yield
Performance |
| Timeline |
| Amg Gwk Municipal |
| Barings High Yield |
Amg Gwk and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Barings Us
The main advantage of trading using opposite Amg Gwk and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Barings Us 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 Barings Us will offset losses from the drop in Barings Us' long position.| Amg Gwk vs. State Street Master | Amg Gwk vs. Janus Investment | Amg Gwk vs. Lord Abbett Emerging | Amg Gwk vs. Schwab Government Money |
| Barings Us vs. Federated Hermes Conservative | Barings Us vs. Guggenheim Diversified Income | Barings Us vs. Putnam Diversified Income | Barings Us vs. Wealthbuilder Conservative Allocation |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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