Correlation Between AMG Advanced and Hilton Food
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Hilton Food 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 Advanced and Hilton Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Hilton Food Group, you can compare the effects of market volatilities on AMG Advanced and Hilton Food 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 Advanced with a short position of Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Hilton Food.
Diversification Opportunities for AMG Advanced and Hilton Food
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMG and Hilton is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group and AMG Advanced 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 Advanced Metallurgical are associated (or correlated) with Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of AMG Advanced i.e., AMG Advanced and Hilton Food go up and down completely randomly.
Pair Corralation between AMG Advanced and Hilton Food
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 2.16 times more return on investment than Hilton Food. However, AMG Advanced is 2.16 times more volatile than Hilton Food Group. It trades about 0.05 of its potential returns per unit of risk. Hilton Food Group is currently generating about -0.05 per unit of risk. If you would invest 1,538 in AMG Advanced Metallurgical on November 19, 2024 and sell it today you would earn a total of 89.00 from holding AMG Advanced Metallurgical or generate 5.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AMG Advanced Metallurgical vs. Hilton Food Group
Performance |
Timeline |
AMG Advanced Metallu |
Hilton Food Group |
AMG Advanced and Hilton Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMG Advanced and Hilton Food
The main advantage of trading using opposite AMG Advanced and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.AMG Advanced vs. United Internet AG | ||
AMG Advanced vs. Charter Communications Cl | ||
AMG Advanced vs. Team Internet Group | ||
AMG Advanced vs. Evolution Gaming Group |
Hilton Food vs. Bigblu Broadband PLC | ||
Hilton Food vs. GlobalData PLC | ||
Hilton Food vs. Verizon Communications | ||
Hilton Food vs. Zegona Communications Plc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
CEOs Directory Screen CEOs from public companies around the world |