Correlation Between GWOCN and AMREP
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By analyzing existing cross correlation between GWOCN 415 03 JUN 47 and AMREP, you can compare the effects of market volatilities on GWOCN and AMREP 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 GWOCN with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWOCN and AMREP.
Diversification Opportunities for GWOCN and AMREP
Poor diversification
The 3 months correlation between GWOCN and AMREP is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GWOCN 415 03 JUN 47 and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and GWOCN 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 GWOCN 415 03 JUN 47 are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of GWOCN i.e., GWOCN and AMREP go up and down completely randomly.
Pair Corralation between GWOCN and AMREP
Assuming the 90 days trading horizon GWOCN 415 03 JUN 47 is expected to under-perform the AMREP. But the bond apears to be less risky and, when comparing its historical volatility, GWOCN 415 03 JUN 47 is 1.08 times less risky than AMREP. The bond trades about -0.05 of its potential returns per unit of risk. The AMREP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,461 in AMREP on September 12, 2024 and sell it today you would earn a total of 151.00 from holding AMREP or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 18.18% |
| Values | Daily Returns |
GWOCN 415 03 JUN 47 vs. AMREP
Performance |
| Timeline |
| GWOCN 415 03 |
| AMREP |
GWOCN and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWOCN and AMREP
The main advantage of trading using opposite GWOCN and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWOCN position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| GWOCN vs. AMREP | GWOCN vs. WEBTOON Entertainment Common | GWOCN vs. PennantPark Investment | GWOCN vs. Skillful Craftsman Education |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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