Correlation Between Amg Gwk and Franklin Gold
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Franklin Gold 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 Franklin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Enhanced and Franklin Gold Precious, you can compare the effects of market volatilities on Amg Gwk and Franklin Gold 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 Franklin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Franklin Gold.
Diversification Opportunities for Amg Gwk and Franklin Gold
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Franklin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Enhanced and Franklin Gold Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Gold Precious 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 Enhanced are associated (or correlated) with Franklin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Gold Precious has no effect on the direction of Amg Gwk i.e., Amg Gwk and Franklin Gold go up and down completely randomly.
Pair Corralation between Amg Gwk and Franklin Gold
Assuming the 90 days horizon Amg Gwk is expected to generate 3.57 times less return on investment than Franklin Gold. But when comparing it to its historical volatility, Amg Gwk Enhanced is 9.57 times less risky than Franklin Gold. It trades about 0.17 of its potential returns per unit of risk. Franklin Gold Precious is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,614 in Franklin Gold Precious on September 3, 2024 and sell it today you would earn a total of 253.00 from holding Franklin Gold Precious or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 62.33% |
| Values | Daily Returns |
Amg Gwk Enhanced vs. Franklin Gold Precious
Performance |
| Timeline |
| Amg Gwk Enhanced |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Gold Precious |
Amg Gwk and Franklin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Franklin Gold
The main advantage of trading using opposite Amg Gwk and Franklin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Franklin Gold 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 Franklin Gold will offset losses from the drop in Franklin Gold's long position.| Amg Gwk vs. James Balanced Golden | Amg Gwk vs. First Eagle Gold | Amg Gwk vs. Short Precious Metals | Amg Gwk vs. Franklin Gold Precious |
| Franklin Gold vs. Rationalpier 88 Convertible | Franklin Gold vs. Gabelli Convertible And | Franklin Gold vs. Calamos Dynamic Convertible | Franklin Gold vs. Absolute Convertible Arbitrage |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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