Correlation Between Boston Partners and Amg River
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Amg River 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 Boston Partners and Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Amg River Road, you can compare the effects of market volatilities on Boston Partners and Amg River 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 Boston Partners with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Amg River.
Diversification Opportunities for Boston Partners and Amg River
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and AMG is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Boston Partners 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 Boston Partners Small are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Boston Partners i.e., Boston Partners and Amg River go up and down completely randomly.
Pair Corralation between Boston Partners and Amg River
Assuming the 90 days horizon Boston Partners is expected to generate 1.19 times less return on investment than Amg River. In addition to that, Boston Partners is 1.06 times more volatile than Amg River Road. It trades about 0.31 of its total potential returns per unit of risk. Amg River Road is currently generating about 0.4 per unit of volatility. If you would invest 1,584 in Amg River Road on September 4, 2024 and sell it today you would earn a total of 199.00 from holding Amg River Road or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Boston Partners Small vs. Amg River Road
Performance |
| Timeline |
| Boston Partners Small |
| Amg River Road |
Boston Partners and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Amg River
The main advantage of trading using opposite Boston Partners and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Amg River 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 River will offset losses from the drop in Amg River's long position.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
| Amg River vs. Alger Smallcap Growth | Amg River vs. Deutsche Global Real | Amg River vs. Amg River Road | Amg River vs. Delaware Value 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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