Correlation Between Affiliated Managers and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers and Bain Capital 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 Affiliated Managers and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group and Bain Capital Specialty, you can compare the effects of market volatilities on Affiliated Managers and Bain Capital 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 Affiliated Managers with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and Bain Capital.
Diversification Opportunities for Affiliated Managers and Bain Capital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affiliated and Bain is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty and Affiliated 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 Affiliated Managers Group are associated (or correlated) with Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of Affiliated Managers i.e., Affiliated Managers and Bain Capital go up and down completely randomly.
Pair Corralation between Affiliated Managers and Bain Capital
Considering the 90-day investment horizon Affiliated Managers Group is expected to under-perform the Bain Capital. In addition to that, Affiliated Managers is 2.45 times more volatile than Bain Capital Specialty. It trades about -0.05 of its total potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.01 per unit of volatility. If you would invest 1,678 in Bain Capital Specialty on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Bain Capital Specialty or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affiliated Managers Group vs. Bain Capital Specialty
Performance |
| Timeline |
| Affiliated Managers |
| Bain Capital Specialty |
Affiliated Managers and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and Bain Capital
The main advantage of trading using opposite Affiliated Managers and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers position performs unexpectedly, Bain Capital 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 Bain Capital will offset losses from the drop in Bain Capital's long position.| Affiliated Managers vs. Brightsphere Investment Group | Affiliated Managers vs. Franklin Templeton Limited | Affiliated Managers vs. Blackrock Muni Intermediate | Affiliated Managers vs. Munivest Fund |
| Bain Capital vs. BlackRock TCP Capital | Bain Capital vs. Triplepoint Venture Growth | Bain Capital vs. Sixth Street Specialty | Bain Capital vs. Golub Capital BDC |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |