Correlation Between AssetMark Financial and Ambipar Emergency

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

Diversification Opportunities for AssetMark Financial and Ambipar Emergency

-0.49

Correlation Coefficient

AssetMark Financial  Ambipar Emergency

Very good diversification

The 3 months correlation between AssetMark and Ambipar is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AssetMark Financial Holdings and Ambipar Emergency Response in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambipar Emergency 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 Ambipar Emergency. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambipar Emergency has no effect on the direction of AssetMark Financial i.e., AssetMark Financial and Ambipar Emergency go up and down completely randomly.

Pair Corralation between AssetMark Financial and Ambipar Emergency

Considering the 90-day investment horizon AssetMark Financial Holdings is expected to generate 0.31 times more return on investment than Ambipar Emergency. However, AssetMark Financial Holdings is 3.25 times less risky than Ambipar Emergency. It trades about -0.03 of its potential returns per unit of risk. Ambipar Emergency Response is currently generating about -0.12 per unit of risk. If you would invest  3,450  in AssetMark Financial Holdings on February 4, 2024 and sell it today you would lose (54.00) from holding AssetMark Financial Holdings or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AssetMark Financial Holdings  vs.  Ambipar Emergency Response

AssetMark Financial

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AssetMark Financial Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent primary indicators, AssetMark Financial may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Ambipar Emergency

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ambipar Emergency Response has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with AssetMark Financial and Ambipar Emergency

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

The idea behind AssetMark Financial Holdings and Ambipar Emergency Response 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.