Correlation Between Affiliated Managers and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Affiliated Managers and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and ClimateRock.
Diversification Opportunities for Affiliated Managers and ClimateRock
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Affiliated and ClimateRock is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Affiliated Managers i.e., Affiliated Managers and ClimateRock go up and down completely randomly.
Pair Corralation between Affiliated Managers and ClimateRock
Considering the 90-day investment horizon Affiliated Managers Group is expected to under-perform the ClimateRock. In addition to that, Affiliated Managers is 1.77 times more volatile than ClimateRock Class A. It trades about -0.35 of its total potential returns per unit of risk. ClimateRock Class A is currently generating about 0.0 per unit of volatility. If you would invest 1,187 in ClimateRock Class A on November 28, 2024 and sell it today you would lose (1.00) from holding ClimateRock Class A or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affiliated Managers Group vs. ClimateRock Class A
Performance |
| Timeline |
| Affiliated Managers |
| ClimateRock Class |
Affiliated Managers and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and ClimateRock
The main advantage of trading using opposite Affiliated Managers and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Affiliated Managers vs. Franklin Templeton Limited | Affiliated Managers vs. Blackrock Muni Intermediate | Affiliated Managers vs. Munivest Fund | Affiliated Managers vs. Blackrock Floating Rate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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