Correlation Between Prenetics Global and Affiliated Managers
Can any of the company-specific risk be diversified away by investing in both Prenetics Global and Affiliated 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 Prenetics Global and Affiliated Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prenetics Global and Affiliated Managers Group, you can compare the effects of market volatilities on Prenetics Global and Affiliated 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 Prenetics Global with a short position of Affiliated Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prenetics Global and Affiliated Managers.
Diversification Opportunities for Prenetics Global and Affiliated Managers
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prenetics and Affiliated is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Prenetics Global and Affiliated Managers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers and Prenetics Global 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 Prenetics Global are associated (or correlated) with Affiliated Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Managers has no effect on the direction of Prenetics Global i.e., Prenetics Global and Affiliated Managers go up and down completely randomly.
Pair Corralation between Prenetics Global and Affiliated Managers
Considering the 90-day investment horizon Prenetics Global is expected to under-perform the Affiliated Managers. In addition to that, Prenetics Global is 3.42 times more volatile than Affiliated Managers Group. It trades about -0.09 of its total potential returns per unit of risk. Affiliated Managers Group is currently generating about 0.11 per unit of volatility. If you would invest 2,268 in Affiliated Managers Group on November 4, 2024 and sell it today you would earn a total of 49.00 from holding Affiliated Managers Group or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prenetics Global vs. Affiliated Managers Group
Performance |
| Timeline |
| Prenetics Global |
| Affiliated Managers |
Prenetics Global and Affiliated Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prenetics Global and Affiliated Managers
The main advantage of trading using opposite Prenetics Global and Affiliated Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prenetics Global position performs unexpectedly, Affiliated 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 Affiliated Managers will offset losses from the drop in Affiliated Managers' long position.| Prenetics Global vs. Neogen | Prenetics Global vs. Qiagen NV | Prenetics Global vs. Aclaris Therapeutics | Prenetics Global vs. Fonar |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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