Correlation Between AssetMark Financial and Affiliated Managers

Can any of the company-specific risk be diversified away by investing in both AssetMark Financial 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 AssetMark Financial and Affiliated Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AssetMark Financial Holdings and Affiliated Managers Group, you can compare the effects of market volatilities on AssetMark Financial 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 AssetMark Financial with a short position of Affiliated Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of AssetMark Financial and Affiliated Managers.

Diversification Opportunities for AssetMark Financial and Affiliated Managers

-0.08

Correlation Coefficient

AssetMark Financial  Affiliated Managers

Good diversification

The 3 months correlation between AssetMark and Affiliated is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding AssetMark Financial Holdings and Affiliated Managers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers and AssetMark Financial 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 AssetMark Financial Holdings 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 AssetMark Financial i.e., AssetMark Financial and Affiliated Managers go up and down completely randomly.

Pair Corralation between AssetMark Financial and Affiliated Managers

If you would invest  17,779  in Affiliated Managers Group on September 29, 2024 and sell it today you would earn a total of  985.00  from holding Affiliated Managers Group or generate 5.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AssetMark Financial Holdings  vs.  Affiliated Managers Group

AssetMark Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AssetMark Financial Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, AssetMark Financial is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Affiliated Managers

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Affiliated Managers Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent primary indicators, Affiliated Managers may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AssetMark Financial and Affiliated Managers

The main advantage of trading using opposite AssetMark Financial and Affiliated Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AssetMark Financial 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.

The idea behind AssetMark Financial Holdings and Affiliated Managers Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.