Correlation Between Amg River and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Amg River and Ab Impact 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 Ab Impact 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 Ab Impact Municipal, you can compare the effects of market volatilities on Amg River and Ab Impact 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 Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Ab Impact.
Diversification Opportunities for Amg River and Ab Impact
Poor diversification
The 3 months correlation between Amg and ABIMX is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal 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 Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Amg River i.e., Amg River and Ab Impact go up and down completely randomly.
Pair Corralation between Amg River and Ab Impact
Assuming the 90 days horizon Amg River Road is expected to generate 3.99 times more return on investment than Ab Impact. However, Amg River is 3.99 times more volatile than Ab Impact Municipal. It trades about -0.02 of its potential returns per unit of risk. Ab Impact Municipal is currently generating about -0.1 per unit of risk. If you would invest 994.00 in Amg River Road on October 18, 2024 and sell it today you would lose (30.00) from holding Amg River Road or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Ab Impact Municipal
Performance |
| Timeline |
| Amg River Road |
| Ab Impact Municipal |
Amg River and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Ab Impact
The main advantage of trading using opposite Amg River and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global Fund |
| Ab Impact vs. Amg River Road | Ab Impact vs. Boston Partners Small | Ab Impact vs. Fpa Queens Road | Ab Impact vs. Mutual Of America |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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