Correlation Between AMG Advanced and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Mulberry Group 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 Mulberry Group 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 Mulberry Group PLC, you can compare the effects of market volatilities on AMG Advanced and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Mulberry Group.
Diversification Opportunities for AMG Advanced and Mulberry Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and Mulberry is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group PLC 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of AMG Advanced i.e., AMG Advanced and Mulberry Group go up and down completely randomly.
Pair Corralation between AMG Advanced and Mulberry Group
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to generate 1.47 times more return on investment than Mulberry Group. However, AMG Advanced is 1.47 times more volatile than Mulberry Group PLC. It trades about 0.09 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about 0.0 per unit of risk. If you would invest 1,439 in AMG Advanced Metallurgical on December 2, 2024 and sell it today you would earn a total of 218.00 from holding AMG Advanced Metallurgical or generate 15.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AMG Advanced Metallurgical vs. Mulberry Group PLC
Performance |
Timeline |
AMG Advanced Metallu |
Mulberry Group PLC |
AMG Advanced and Mulberry Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMG Advanced and Mulberry Group
The main advantage of trading using opposite AMG Advanced and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.AMG Advanced vs. Cellnex Telecom SA | AMG Advanced vs. Batm Advanced Communications | AMG Advanced vs. Zegona Communications Plc | AMG Advanced vs. Zurich Insurance Group |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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