Correlation Between Bbh Intermediate and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Amg Managers 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 Bbh Intermediate and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Amg Managers Centersquare, you can compare the effects of market volatilities on Bbh Intermediate and Amg Managers 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 Bbh Intermediate with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Amg Managers.
Diversification Opportunities for Bbh Intermediate and Amg Managers
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bbh and Amg is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Amg Managers go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Amg Managers
Assuming the 90 days horizon Bbh Intermediate is expected to generate 3.29 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 6.17 times less risky than Amg Managers. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,038 in Amg Managers Centersquare on September 1, 2024 and sell it today you would earn a total of 209.00 from holding Amg Managers Centersquare or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Amg Managers Centersquare
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Amg Managers Centersquare |
Bbh Intermediate and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Amg Managers
The main advantage of trading using opposite Bbh Intermediate and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Bbh Intermediate vs. Nationwide Growth Fund | Bbh Intermediate vs. T Rowe Price | Bbh Intermediate vs. Eip Growth And | Bbh Intermediate vs. Small Pany Growth |
| Amg Managers vs. Hennessy Technology Fund | Amg Managers vs. Pgim Jennison Technology | Amg Managers vs. Biotechnology Ultrasector Profund | Amg Managers vs. Technology Ultrasector Profund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |