Correlation Between Amg Managers and Prudential Health
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Prudential Health 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 Prudential Health 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 Prudential Health Sciences, you can compare the effects of market volatilities on Amg Managers and Prudential Health 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 Prudential Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Prudential Health.
Diversification Opportunities for Amg Managers and Prudential Health
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Prudential is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Fairpointe and Prudential Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Health 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 Prudential Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Health has no effect on the direction of Amg Managers i.e., Amg Managers and Prudential Health go up and down completely randomly.
Pair Corralation between Amg Managers and Prudential Health
Assuming the 90 days horizon Amg Managers Fairpointe is expected to generate 0.58 times more return on investment than Prudential Health. However, Amg Managers Fairpointe is 1.72 times less risky than Prudential Health. It trades about 0.02 of its potential returns per unit of risk. Prudential Health Sciences is currently generating about -0.11 per unit of risk. If you would invest 2,564 in Amg Managers Fairpointe on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Amg Managers Fairpointe or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Fairpointe vs. Prudential Health Sciences
Performance |
| Timeline |
| Amg Managers Fairpointe |
| Prudential Health |
Amg Managers and Prudential Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Prudential Health
The main advantage of trading using opposite Amg Managers and Prudential Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Prudential Health 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 Prudential Health will offset losses from the drop in Prudential Health'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 |
| Prudential Health vs. Sp Midcap Index | Prudential Health vs. Extended Market Index | Prudential Health vs. Ab All Market | Prudential Health vs. Aqr Long Short Equity |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |