Correlation Between Lifestyle and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Lifestyle and Amg Gwk 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 Lifestyle and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestyle Ii Moderate and Amg Gwk Municipal, you can compare the effects of market volatilities on Lifestyle and Amg Gwk 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 Lifestyle with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestyle and Amg Gwk.
Diversification Opportunities for Lifestyle and Amg Gwk
Very weak diversification
The 3 months correlation between Lifestyle and Amg is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lifestyle Ii Moderate and Amg Gwk Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Municipal and Lifestyle 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 Lifestyle Ii Moderate are associated (or correlated) with Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Municipal has no effect on the direction of Lifestyle i.e., Lifestyle and Amg Gwk go up and down completely randomly.
Pair Corralation between Lifestyle and Amg Gwk
Assuming the 90 days horizon Lifestyle is expected to generate 1.1 times less return on investment than Amg Gwk. But when comparing it to its historical volatility, Lifestyle Ii Moderate is 1.16 times less risky than Amg Gwk. It trades about 0.2 of its potential returns per unit of risk. Amg Gwk Municipal is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 887.00 in Amg Gwk Municipal on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Amg Gwk Municipal or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifestyle Ii Moderate vs. Amg Gwk Municipal
Performance |
| Timeline |
| Lifestyle Ii Moderate |
| Amg Gwk Municipal |
Lifestyle and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifestyle and Amg Gwk
The main advantage of trading using opposite Lifestyle and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestyle position performs unexpectedly, Amg Gwk 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 Gwk will offset losses from the drop in Amg Gwk's long position.| Lifestyle vs. Prudential Health Sciences | Lifestyle vs. Alphacentric Lifesci Healthcare | Lifestyle vs. Deutsche Health And | Lifestyle vs. Highland Longshort Healthcare |
| Amg Gwk vs. International Investors Gold | Amg Gwk vs. Franklin Gold Precious | Amg Gwk vs. Gabelli Gold Fund | Amg Gwk vs. Great West Goldman Sachs |
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 CEOs Directory module to screen CEOs from public companies around the world.
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