Correlation Between Amg Managers and Great West

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Great West 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 Managers and Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Great West International Index, you can compare the effects of market volatilities on Amg Managers and Great West 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 Managers with a short position of Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Great West.

Diversification Opportunities for Amg Managers and Great West

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Amg and Great is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Great West International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Internati and Amg Managers 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 Managers Centersquare are associated (or correlated) with Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Internati has no effect on the direction of Amg Managers i.e., Amg Managers and Great West go up and down completely randomly.

Pair Corralation between Amg Managers and Great West

Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 1.41 times more return on investment than Great West. However, Amg Managers is 1.41 times more volatile than Great West International Index. It trades about 0.05 of its potential returns per unit of risk. Great West International Index is currently generating about 0.06 per unit of risk. If you would invest  953.00  in Amg Managers Centersquare on September 12, 2024 and sell it today you would earn a total of  262.00  from holding Amg Managers Centersquare or generate 27.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amg Managers Centersquare  vs.  Great West International Index

 Performance 
       Timeline  
Amg Managers Centersquare 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amg Managers Centersquare has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Great West Internati 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Great West International Index has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Great West is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers and Great West Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amg Managers and Great West

The main advantage of trading using opposite Amg Managers and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.
The idea behind Amg Managers Centersquare and Great West International Index 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.
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals