Correlation Between Amg Gwk and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Amg Gwk and Stone 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 Amg Gwk and Stone Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Gwk Municipal and Stone Ridge Diversified, you can compare the effects of market volatilities on Amg Gwk and Stone 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 Amg Gwk with a short position of Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Gwk and Stone Ridge.
Diversification Opportunities for Amg Gwk and Stone Ridge
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Stone is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amg Gwk Municipal and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified and Amg Gwk 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 Gwk Municipal are associated (or correlated) with Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Amg Gwk i.e., Amg Gwk and Stone Ridge go up and down completely randomly.
Pair Corralation between Amg Gwk and Stone Ridge
Assuming the 90 days horizon Amg Gwk Municipal is expected to generate 1.32 times more return on investment than Stone Ridge. However, Amg Gwk is 1.32 times more volatile than Stone Ridge Diversified. It trades about 0.32 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about 0.21 per unit of risk. If you would invest 829.00 in Amg Gwk Municipal on September 3, 2025 and sell it today you would earn a total of 43.00 from holding Amg Gwk Municipal or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Amg Gwk Municipal vs. Stone Ridge Diversified
Performance |
| Timeline |
| Amg Gwk Municipal |
| Stone Ridge Diversified |
Amg Gwk and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Gwk and Stone Ridge
The main advantage of trading using opposite Amg Gwk and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Gwk position performs unexpectedly, Stone 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Amg Gwk vs. Dreyfusstandish Global Fixed | Amg Gwk vs. Pace Strategic Fixed | Amg Gwk vs. Maryland Tax Free Bond | Amg Gwk vs. Multisector Bond Sma |
| Stone Ridge vs. Transamerica Intermediate Muni | Stone Ridge vs. Maryland Tax Free Bond | Stone Ridge vs. Multisector Bond Sma | Stone Ridge vs. Ambrus Core Bond |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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