Correlation Between Amg Managers and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Amg Southernsun 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 Amg Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Doubleline and Amg Southernsun Equity, you can compare the effects of market volatilities on Amg Managers and Amg Southernsun 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 Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Amg Southernsun.
Diversification Opportunities for Amg Managers and Amg Southernsun
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Amg is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Doubleline and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity 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 Doubleline are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Amg Managers i.e., Amg Managers and Amg Southernsun go up and down completely randomly.
Pair Corralation between Amg Managers and Amg Southernsun
Assuming the 90 days horizon Amg Managers is expected to generate 2.98 times less return on investment than Amg Southernsun. But when comparing it to its historical volatility, Amg Managers Doubleline is 3.01 times less risky than Amg Southernsun. It trades about 0.04 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,269 in Amg Southernsun Equity on September 12, 2024 and sell it today you would earn a total of 271.00 from holding Amg Southernsun Equity or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Doubleline vs. Amg Southernsun Equity
Performance |
| Timeline |
| Amg Managers Doubleline |
| Amg Southernsun Equity |
Amg Managers and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Amg Southernsun
The main advantage of trading using opposite Amg Managers and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Amg Southernsun 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 Southernsun will offset losses from the drop in Amg Southernsun's long position.| Amg Managers vs. Red Oak Technology | Amg Managers vs. Invesco Technology Fund | Amg Managers vs. Vanguard Information Technology | Amg Managers vs. Mfs Technology Fund |
| Amg Southernsun vs. Elfun Diversified Fund | Amg Southernsun vs. Western Asset Diversified | Amg Southernsun vs. Blackrock Conservative Prprdptfinstttnl | Amg Southernsun vs. Calvert Conservative Allocation |
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
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |