Correlation Between Amg River and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Amg River and Horizon Active 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 Horizon Active 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 Horizon Active Asset, you can compare the effects of market volatilities on Amg River and Horizon Active 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 Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Horizon Active.
Diversification Opportunities for Amg River and Horizon Active
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Horizon is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset 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 Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of Amg River i.e., Amg River and Horizon Active go up and down completely randomly.
Pair Corralation between Amg River and Horizon Active
Assuming the 90 days horizon Amg River Road is expected to generate 1.34 times more return on investment than Horizon Active. However, Amg River is 1.34 times more volatile than Horizon Active Asset. It trades about 0.23 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.12 per unit of risk. If you would invest 976.00 in Amg River Road on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Amg River Road or generate 14.86% 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. Horizon Active Asset
Performance |
| Timeline |
| Amg River Road |
| Horizon Active Asset |
Amg River and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Horizon Active
The main advantage of trading using opposite Amg River and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Amg River vs. Alger Smallcap Growth | Amg River vs. Deutsche Global Real | Amg River vs. Amg River Road | Amg River vs. Delaware Value Fund |
| Horizon Active vs. Blackrock Moderate Prepared | Horizon Active vs. Moderately Aggressive Balanced | Horizon Active vs. Transamerica Cleartrack Retirement | Horizon Active vs. Lifestyle Ii Moderate |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |