Correlation Between AssetMark Financial and Logan Ridge

Can any of the company-specific risk be diversified away by investing in both AssetMark Financial and Logan Ridge 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 Logan Ridge 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 Logan Ridge Finance, you can compare the effects of market volatilities on AssetMark Financial and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of AssetMark Financial and Logan Ridge.

Diversification Opportunities for AssetMark Financial and Logan Ridge

0.0

Correlation Coefficient

AssetMark Financial  Logan Ridge

Pay attention - limited upside

The 3 months correlation between AssetMark and Logan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AssetMark Financial Holdings and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of AssetMark Financial i.e., AssetMark Financial and Logan Ridge go up and down completely randomly.

Pair Corralation between AssetMark Financial and Logan Ridge

If you would invest (100.00) in AssetMark Financial Holdings on December 26, 2024 and sell it today you would earn a total of  100.00  from holding AssetMark Financial Holdings or generate -100.0% return on investment over 90 days.

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

AssetMark Financial Holdings  vs.  Logan Ridge Finance

AssetMark Financial

Risk-Adjusted Performance

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.

Logan Ridge Finance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Logan Ridge Finance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with AssetMark Financial and Logan Ridge

The main advantage of trading using opposite AssetMark Financial and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AssetMark Financial position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.

The idea behind AssetMark Financial Holdings and Logan Ridge Finance 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.