Correlation Between Blackrock High and Amg Frontier
Can any of the company-specific risk be diversified away by investing in both Blackrock High and Amg Frontier 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 Blackrock High and Amg Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock High Yield and Amg Frontier Small, you can compare the effects of market volatilities on Blackrock High and Amg Frontier 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 Blackrock High with a short position of Amg Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock High and Amg Frontier.
Diversification Opportunities for Blackrock High and Amg Frontier
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Amg is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock High Yield and Amg Frontier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Frontier Small and Blackrock High 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 Blackrock High Yield are associated (or correlated) with Amg Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Frontier Small has no effect on the direction of Blackrock High i.e., Blackrock High and Amg Frontier go up and down completely randomly.
Pair Corralation between Blackrock High and Amg Frontier
Assuming the 90 days horizon Blackrock High is expected to generate 13.44 times less return on investment than Amg Frontier. But when comparing it to its historical volatility, Blackrock High Yield is 13.81 times less risky than Amg Frontier. It trades about 0.29 of its potential returns per unit of risk. Amg Frontier Small is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 957.00 in Amg Frontier Small on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Amg Frontier Small or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blackrock High Yield vs. Amg Frontier Small
Performance |
| Timeline |
| Blackrock High Yield |
| Amg Frontier Small |
Blackrock High and Amg Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock High and Amg Frontier
The main advantage of trading using opposite Blackrock High and Amg Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock High position performs unexpectedly, Amg Frontier 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 Frontier will offset losses from the drop in Amg Frontier's long position.| Blackrock High vs. Us Government Securities | Blackrock High vs. Fidelity Series Government | Blackrock High vs. Short Term Government Fund | Blackrock High vs. Prudential Government Income |
| Amg Frontier vs. World Energy Fund | Amg Frontier vs. Jennison Natural Resources | Amg Frontier vs. Calvert Global Energy | Amg Frontier vs. Invesco Energy Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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