Correlation Between Amg River and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Amg River and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Amg River and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Champlain Mid.
Diversification Opportunities for Amg River and Champlain Mid
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Champlain is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Amg River i.e., Amg River and Champlain Mid go up and down completely randomly.
Pair Corralation between Amg River and Champlain Mid
Assuming the 90 days horizon Amg River Road is expected to generate 0.95 times more return on investment than Champlain Mid. However, Amg River Road is 1.05 times less risky than Champlain Mid. It trades about 0.03 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about -0.01 per unit of risk. If you would invest 1,581 in Amg River Road on November 2, 2024 and sell it today you would earn a total of 27.00 from holding Amg River Road or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Champlain Mid Cap
Performance |
| Timeline |
| Amg River Road |
| Champlain Mid Cap |
Amg River and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Champlain Mid
The main advantage of trading using opposite Amg River and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid'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 |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
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.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |