Correlation Between Amg River and State Street
Can any of the company-specific risk be diversified away by investing in both Amg River and State Street 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 State Street 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 State Street Income, you can compare the effects of market volatilities on Amg River and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and State Street.
Diversification Opportunities for Amg River and State Street
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amg and State is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and State Street Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Income 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Income has no effect on the direction of Amg River i.e., Amg River and State Street go up and down completely randomly.
Pair Corralation between Amg River and State Street
Assuming the 90 days horizon Amg River Road is expected to generate 2.07 times more return on investment than State Street. However, Amg River is 2.07 times more volatile than State Street Income. It trades about 0.08 of its potential returns per unit of risk. State Street Income is currently generating about 0.04 per unit of risk. If you would invest 858.00 in Amg River Road on September 1, 2024 and sell it today you would earn a total of 263.00 from holding Amg River Road or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. State Street Income
Performance |
| Timeline |
| Amg River Road |
| State Street Income |
Amg River and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and State Street
The main advantage of trading using opposite Amg River and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street'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 |
| State Street vs. Vanguard Total Bond | State Street vs. Vanguard Total Bond | State Street vs. Vanguard Total Bond | State Street vs. Vanguard Total Bond |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |