Correlation Between Amg Managers and Scharf Global
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Scharf Global 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 Scharf Global 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 Scharf Global Opportunity, you can compare the effects of market volatilities on Amg Managers and Scharf Global 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 Scharf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Scharf Global.
Diversification Opportunities for Amg Managers and Scharf Global
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Scharf is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Doubleline and Scharf Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Global Opportunity 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 Scharf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Global Opportunity has no effect on the direction of Amg Managers i.e., Amg Managers and Scharf Global go up and down completely randomly.
Pair Corralation between Amg Managers and Scharf Global
Assuming the 90 days horizon Amg Managers Doubleline is expected to generate 0.64 times more return on investment than Scharf Global. However, Amg Managers Doubleline is 1.57 times less risky than Scharf Global. It trades about 0.04 of its potential returns per unit of risk. Scharf Global Opportunity is currently generating about -0.01 per unit of risk. If you would invest 876.00 in Amg Managers Doubleline on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Amg Managers Doubleline or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg Managers Doubleline vs. Scharf Global Opportunity
Performance |
| Timeline |
| Amg Managers Doubleline |
| Scharf Global Opportunity |
Amg Managers and Scharf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Scharf Global
The main advantage of trading using opposite Amg Managers and Scharf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Scharf Global 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 Scharf Global will offset losses from the drop in Scharf Global's long position.| Amg Managers vs. Scharf Global Opportunity | Amg Managers vs. Rbb Fund | Amg Managers vs. Rbc Microcap Value | Amg Managers vs. Balanced Fund Investor |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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