Correlation Between Amg Gwk and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Amg Gwk 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 Amg Gwk and Amg Gwk 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 Amg Gwk Small, you can compare the effects of market volatilities on Amg Gwk 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 Amg Gwk with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Amg Gwk.
Diversification Opportunities for Amg Gwk and Amg Gwk
Poor diversification
The 3 months correlation between Amg and AMG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Enhanced and Amg Gwk Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Small 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 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 Small has no effect on the direction of Amg Gwk i.e., Amg Gwk and Amg Gwk go up and down completely randomly.
Pair Corralation between Amg Gwk and Amg Gwk
Assuming the 90 days horizon Amg Gwk is expected to generate 3.5 times less return on investment than Amg Gwk. But when comparing it to its historical volatility, Amg Gwk Enhanced is 5.63 times less risky than Amg Gwk. It trades about 0.2 of its potential returns per unit of risk. Amg Gwk Small is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,901 in Amg Gwk Small on August 28, 2024 and sell it today you would earn a total of 705.00 from holding Amg Gwk Small or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 64.63% |
| Values | Daily Returns |
Amg Gwk Enhanced vs. Amg Gwk Small
Performance |
| Timeline |
| Amg Gwk Enhanced |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amg Gwk Small |
Amg Gwk and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Amg Gwk
The main advantage of trading using opposite Amg Gwk and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk 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.| Amg Gwk vs. Angel Oak Ultrashort | Amg Gwk vs. Calvert Short Duration | Amg Gwk vs. Astor Longshort Fund | Amg Gwk vs. Rbc Short Duration |
| Amg Gwk vs. American Beacon Bridgeway | Amg Gwk vs. John Hancock Disciplined | Amg Gwk vs. Large Cap Fund | Amg Gwk vs. Baird E Plus |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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