Correlation Between Amg River and Federated Max
Can any of the company-specific risk be diversified away by investing in both Amg River and Federated Max 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 Federated Max 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 Federated Max Cap Index, you can compare the effects of market volatilities on Amg River and Federated Max 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 Federated Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Federated Max.
Diversification Opportunities for Amg River and Federated Max
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Federated is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Federated Max Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Max Cap 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 Federated Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Max Cap has no effect on the direction of Amg River i.e., Amg River and Federated Max go up and down completely randomly.
Pair Corralation between Amg River and Federated Max
Assuming the 90 days horizon Amg River Road is expected to generate 0.91 times more return on investment than Federated Max. However, Amg River Road is 1.1 times less risky than Federated Max. It trades about 0.08 of its potential returns per unit of risk. Federated Max Cap Index is currently generating about 0.06 per unit of risk. If you would invest 926.00 in Amg River Road on September 14, 2024 and sell it today you would earn a total of 175.00 from holding Amg River Road or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Federated Max Cap Index
Performance |
| Timeline |
| Amg River Road |
| Federated Max Cap |
Amg River and Federated Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Federated Max
The main advantage of trading using opposite Amg River and Federated Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Federated Max 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 Federated Max will offset losses from the drop in Federated Max'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 |
| Federated Max vs. Counterpoint Tactical Municipal | Federated Max vs. T Rowe Price | Federated Max vs. Alliancebernstein National Municipal | Federated Max vs. Transamerica Intermediate Muni |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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