Correlation Between Amg River and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Amg River and Mainstay Conservative 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 Mainstay Conservative 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 Mainstay Conservative Allocation, you can compare the effects of market volatilities on Amg River and Mainstay Conservative 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 Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Mainstay Conservative.
Diversification Opportunities for Amg River and Mainstay Conservative
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Mainstay is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Mainstay Conservative Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative 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 Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative has no effect on the direction of Amg River i.e., Amg River and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Amg River and Mainstay Conservative
If you would invest 1,090 in Amg River Road on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Amg River Road or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Amg River Road vs. Mainstay Conservative Allocati
Performance |
| Timeline |
| Amg River Road |
| Mainstay Conservative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amg River and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Mainstay Conservative
The main advantage of trading using opposite Amg River and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Mainstay Conservative 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 Mainstay Conservative will offset losses from the drop in Mainstay Conservative'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 |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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