Correlation Between Walden Smid and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Walden Smid 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 Walden Smid and Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walden Smid Cap and Amg Gwk Smallmid, you can compare the effects of market volatilities on Walden Smid 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 Walden Smid with a short position of Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walden Smid and Amg Gwk.
Diversification Opportunities for Walden Smid and Amg Gwk
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Walden and Amg is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Walden Smid Cap and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid and Walden Smid 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 Walden Smid Cap 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 Smallmid has no effect on the direction of Walden Smid i.e., Walden Smid and Amg Gwk go up and down completely randomly.
Pair Corralation between Walden Smid and Amg Gwk
Assuming the 90 days horizon Walden Smid is expected to generate 1.41 times less return on investment than Amg Gwk. But when comparing it to its historical volatility, Walden Smid Cap is 1.33 times less risky than Amg Gwk. It trades about 0.32 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,865 in Amg Gwk Smallmid on September 2, 2024 and sell it today you would earn a total of 189.00 from holding Amg Gwk Smallmid or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walden Smid Cap vs. Amg Gwk Smallmid
Performance |
| Timeline |
| Walden Smid Cap |
| Amg Gwk Smallmid |
Walden Smid and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walden Smid and Amg Gwk
The main advantage of trading using opposite Walden Smid and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walden Smid 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.| Walden Smid vs. Boston Trust Asset | Walden Smid vs. Virtus Kar Mid Cap | Walden Smid vs. Virtus Kar Mid Cap | Walden Smid vs. Ab E Opportunities |
| Amg Gwk vs. Champlain Mid Cap | Amg Gwk vs. Johcm Emerging Markets | Amg Gwk vs. Walden Smid Cap | Amg Gwk vs. American Beacon Stephens |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |