Correlation Between Balanced Fund and Amg Chicago
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Amg Chicago 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 Balanced Fund and Amg Chicago into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund I and Amg Chicago Equity, you can compare the effects of market volatilities on Balanced Fund and Amg Chicago 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 Balanced Fund with a short position of Amg Chicago. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Amg Chicago.
Diversification Opportunities for Balanced Fund and Amg Chicago
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Balanced and Amg is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund I and Amg Chicago Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Chicago Equity and Balanced Fund 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 Balanced Fund I are associated (or correlated) with Amg Chicago. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Chicago Equity has no effect on the direction of Balanced Fund i.e., Balanced Fund and Amg Chicago go up and down completely randomly.
Pair Corralation between Balanced Fund and Amg Chicago
If you would invest 1,982 in Balanced Fund I on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Balanced Fund I or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Balanced Fund I vs. Amg Chicago Equity
Performance |
| Timeline |
| Balanced Fund I |
| Amg Chicago Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Balanced Fund and Amg Chicago Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Amg Chicago
The main advantage of trading using opposite Balanced Fund and Amg Chicago positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Amg Chicago 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 Amg Chicago will offset losses from the drop in Amg Chicago's long position.| Balanced Fund vs. American Funds American | Balanced Fund vs. American Funds American | Balanced Fund vs. American Balanced | Balanced Fund vs. American Balanced Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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