Correlation Between Armada Hflr and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Amg Managers Brandywine, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Amg Managers.
Diversification Opportunities for Armada Hflr and Amg Managers
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Armada and Amg is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Amg Managers Brandywine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Brandywine and Armada Hflr 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 Armada Hflr Pr 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 Brandywine has no effect on the direction of Armada Hflr i.e., Armada Hflr and Amg Managers go up and down completely randomly.
Pair Corralation between Armada Hflr and Amg Managers
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Amg Managers. In addition to that, Armada Hflr is 3.12 times more volatile than Amg Managers Brandywine. It trades about -0.02 of its total potential returns per unit of risk. Amg Managers Brandywine is currently generating about 0.09 per unit of volatility. If you would invest 3,549 in Amg Managers Brandywine on September 12, 2024 and sell it today you would earn a total of 400.00 from holding Amg Managers Brandywine or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Armada Hflr Pr vs. Amg Managers Brandywine
Performance |
| Timeline |
| Armada Hflr Pr |
| Amg Managers Brandywine |
Armada Hflr and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Amg Managers
The main advantage of trading using opposite Armada Hflr and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Amg Managers vs. Diamond Hill Long Short | Amg Managers vs. SCOR PK | Amg Managers vs. Morningstar Unconstrained Allocation | Amg Managers vs. Via Renewables |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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