Correlation Between Amg River and International Fund
Can any of the company-specific risk be diversified away by investing in both Amg River and International Fund 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 International Fund 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 International Fund International, you can compare the effects of market volatilities on Amg River and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and International Fund.
Diversification Opportunities for Amg River and International Fund
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and International is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Amg River i.e., Amg River and International Fund go up and down completely randomly.
Pair Corralation between Amg River and International Fund
Assuming the 90 days horizon Amg River Road is expected to generate 1.41 times more return on investment than International Fund. However, Amg River is 1.41 times more volatile than International Fund International. It trades about 0.19 of its potential returns per unit of risk. International Fund International is currently generating about -0.13 per unit of risk. If you would invest 1,017 in Amg River Road on September 13, 2024 and sell it today you would earn a total of 84.00 from holding Amg River Road or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Amg River Road vs. International Fund Internation
Performance |
| Timeline |
| Amg River Road |
| International Fund |
Amg River and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and International Fund
The main advantage of trading using opposite Amg River and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund'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 |
| International Fund vs. Strategic Advisers Income | International Fund vs. T Rowe Price | International Fund vs. Prudential High Yield | International Fund vs. Gmo High Yield |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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