Correlation Between Baron Emerging and Amg Timessquare
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Amg Timessquare 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 Baron Emerging and Amg Timessquare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Emerging Markets and Amg Timessquare International, you can compare the effects of market volatilities on Baron Emerging and Amg Timessquare 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 Baron Emerging with a short position of Amg Timessquare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Amg Timessquare.
Diversification Opportunities for Baron Emerging and Amg Timessquare
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baron and AMG is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Amg Timessquare International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Timessquare Inte and Baron Emerging 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 Baron Emerging Markets are associated (or correlated) with Amg Timessquare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Timessquare Inte has no effect on the direction of Baron Emerging i.e., Baron Emerging and Amg Timessquare go up and down completely randomly.
Pair Corralation between Baron Emerging and Amg Timessquare
Assuming the 90 days horizon Baron Emerging Markets is expected to under-perform the Amg Timessquare. In addition to that, Baron Emerging is 1.44 times more volatile than Amg Timessquare International. It trades about -0.22 of its total potential returns per unit of risk. Amg Timessquare International is currently generating about -0.13 per unit of volatility. If you would invest 1,515 in Amg Timessquare International on August 29, 2024 and sell it today you would lose (29.00) from holding Amg Timessquare International or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Emerging Markets vs. Amg Timessquare International
Performance |
| Timeline |
| Baron Emerging Markets |
| Amg Timessquare Inte |
Baron Emerging and Amg Timessquare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Amg Timessquare
The main advantage of trading using opposite Baron Emerging and Amg Timessquare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Amg Timessquare 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 Timessquare will offset losses from the drop in Amg Timessquare's long position.| Baron Emerging vs. Eaton Vance Income | Baron Emerging vs. Baird Aggregate Bond | Baron Emerging vs. Champlain Small | Baron Emerging vs. Mfs Emerging Markets |
| Amg Timessquare vs. Baron Discovery Fund | Amg Timessquare vs. Virtus Kar Small Cap | Amg Timessquare vs. Champlain Mid Cap | Amg Timessquare vs. Poplar Forest Partners |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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