Correlation Between Amg Managers and Lind Capital
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Lind Capital 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 Managers and Lind Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Fairpointe and Lind Capital Partners, you can compare the effects of market volatilities on Amg Managers and Lind Capital 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 Managers with a short position of Lind Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Lind Capital.
Diversification Opportunities for Amg Managers and Lind Capital
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Lind is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Fairpointe and Lind Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lind Capital Partners and Amg Managers 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 Managers Fairpointe are associated (or correlated) with Lind Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lind Capital Partners has no effect on the direction of Amg Managers i.e., Amg Managers and Lind Capital go up and down completely randomly.
Pair Corralation between Amg Managers and Lind Capital
Assuming the 90 days horizon Amg Managers Fairpointe is expected to generate 2.67 times more return on investment than Lind Capital. However, Amg Managers is 2.67 times more volatile than Lind Capital Partners. It trades about 0.08 of its potential returns per unit of risk. Lind Capital Partners is currently generating about 0.1 per unit of risk. If you would invest 2,025 in Amg Managers Fairpointe on September 12, 2024 and sell it today you would earn a total of 544.00 from holding Amg Managers Fairpointe or generate 26.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Fairpointe vs. Lind Capital Partners
Performance |
| Timeline |
| Amg Managers Fairpointe |
| Lind Capital Partners |
Amg Managers and Lind Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Lind Capital
The main advantage of trading using opposite Amg Managers and Lind Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Lind Capital 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 Lind Capital will offset losses from the drop in Lind Capital's long position.| Amg Managers vs. Lebenthal Lisanti Small | Amg Managers vs. Smallcap Growth Fund | Amg Managers vs. Small Pany Growth | Amg Managers vs. Mutual Of America |
| Lind Capital vs. Blackrock Financial Institutions | Lind Capital vs. Prudential Jennison Financial | Lind Capital vs. John Hancock Financial | Lind Capital vs. 1919 Financial Services |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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