Correlation Between Amg Southernsun and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Amg Southernsun 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 Southernsun 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 Southernsun Equity and Amg Gwk Municipal, you can compare the effects of market volatilities on Amg Southernsun 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 Southernsun with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Southernsun and Amg Gwk.
Diversification Opportunities for Amg Southernsun and Amg Gwk
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and Amg is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amg Southernsun Equity 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 Amg Southernsun 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 Southernsun Equity 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 Amg Southernsun i.e., Amg Southernsun and Amg Gwk go up and down completely randomly.
Pair Corralation between Amg Southernsun and Amg Gwk
Assuming the 90 days horizon Amg Southernsun Equity is expected to generate 2.66 times more return on investment than Amg Gwk. However, Amg Southernsun is 2.66 times more volatile than Amg Gwk Municipal. It trades about 0.26 of its potential returns per unit of risk. Amg Gwk Municipal is currently generating about 0.2 per unit of risk. If you would invest 1,470 in Amg Southernsun Equity on August 30, 2024 and sell it today you would earn a total of 98.00 from holding Amg Southernsun Equity or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Southernsun Equity vs. Amg Gwk Municipal
Performance |
| Timeline |
| Amg Southernsun Equity |
| Amg Gwk Municipal |
Amg Southernsun and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Southernsun and Amg Gwk
The main advantage of trading using opposite Amg Southernsun and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Southernsun 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 Southernsun vs. Ab Select Longshort | Amg Southernsun vs. Touchstone Ultra Short | Amg Southernsun vs. Franklin Federal Limited Term | Amg Southernsun vs. Old Westbury Short Term |
| Amg Gwk vs. Vanguard Small Cap Value | Amg Gwk vs. American Century Etf | Amg Gwk vs. Mutual Of America | Amg Gwk vs. Hennessy Nerstone Mid |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |