Correlation Between Aamg Funds and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Aamg Funds and Amg Managers 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 Aamg Funds and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamg Funds Iv and Amg Managers Fairpointe, you can compare the effects of market volatilities on Aamg Funds and Amg Managers 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 Aamg Funds with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamg Funds and Amg Managers.
Diversification Opportunities for Aamg Funds and Amg Managers
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aamg and Amg is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aamg Funds Iv and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe and Aamg Funds 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 Aamg Funds Iv are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Aamg Funds i.e., Aamg Funds and Amg Managers go up and down completely randomly.
Pair Corralation between Aamg Funds and Amg Managers
Assuming the 90 days horizon Aamg Funds Iv is expected to generate 1.27 times more return on investment than Amg Managers. However, Aamg Funds is 1.27 times more volatile than Amg Managers Fairpointe. It trades about 0.21 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.18 per unit of risk. If you would invest 1,826 in Aamg Funds Iv on November 9, 2024 and sell it today you would earn a total of 69.00 from holding Aamg Funds Iv or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aamg Funds Iv vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Aamg Funds Iv |
| Amg Managers Fairpointe |
Aamg Funds and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aamg Funds and Amg Managers
The main advantage of trading using opposite Aamg Funds and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamg Funds position performs unexpectedly, Amg Managers 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 Managers will offset losses from the drop in Amg Managers' long position.| Aamg Funds vs. Europac Gold Fund | Aamg Funds vs. Ocm Mutual Fund | Aamg Funds vs. Precious Metals Ultrasector | Aamg Funds vs. Wells Fargo Advantage |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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