Correlation Between Amg River and Absolute Strategies
Can any of the company-specific risk be diversified away by investing in both Amg River and Absolute Strategies 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 River and Absolute Strategies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Absolute Strategies Fund, you can compare the effects of market volatilities on Amg River and Absolute Strategies 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 River with a short position of Absolute Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Absolute Strategies.
Diversification Opportunities for Amg River and Absolute Strategies
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amg and Absolute is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Absolute Strategies Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Strategies and Amg River 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 River Road are associated (or correlated) with Absolute Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Strategies has no effect on the direction of Amg River i.e., Amg River and Absolute Strategies go up and down completely randomly.
Pair Corralation between Amg River and Absolute Strategies
Assuming the 90 days horizon Amg River Road is expected to generate 10.15 times more return on investment than Absolute Strategies. However, Amg River is 10.15 times more volatile than Absolute Strategies Fund. It trades about 0.29 of its potential returns per unit of risk. Absolute Strategies Fund is currently generating about -0.41 per unit of risk. If you would invest 1,086 in Amg River Road on August 27, 2024 and sell it today you would earn a total of 47.00 from holding Amg River Road or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
Amg River Road vs. Absolute Strategies Fund
Performance |
| Timeline |
| Amg River Road |
| Absolute Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amg River and Absolute Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Absolute Strategies
The main advantage of trading using opposite Amg River and Absolute Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Absolute Strategies 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 Absolute Strategies will offset losses from the drop in Absolute Strategies' long position.| Amg River vs. Amg Southernsun Equity | Amg River vs. Amg Southernsun Equity | Amg River vs. Amg Fq Long Short | Amg River vs. Amg Southernsun Small |
| Absolute Strategies vs. Fidelity Advisor Energy | Absolute Strategies vs. Short Oil Gas | Absolute Strategies vs. Clearbridge Energy Mlp | Absolute Strategies vs. Hennessy Bp Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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