Correlation Between Amg Managers and Aamg Funds
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Aamg Funds 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 Managers and Aamg Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Brandywine and Aamg Funds Iv, you can compare the effects of market volatilities on Amg Managers and Aamg Funds 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 Managers with a short position of Aamg Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Aamg Funds.
Diversification Opportunities for Amg Managers and Aamg Funds
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMG and Aamg is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Brandywine and Aamg Funds Iv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aamg Funds Iv and Amg Managers 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 Managers Brandywine are associated (or correlated) with Aamg Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aamg Funds Iv has no effect on the direction of Amg Managers i.e., Amg Managers and Aamg Funds go up and down completely randomly.
Pair Corralation between Amg Managers and Aamg Funds
Assuming the 90 days horizon Amg Managers is expected to generate 2.04 times less return on investment than Aamg Funds. But when comparing it to its historical volatility, Amg Managers Brandywine is 1.05 times less risky than Aamg Funds. It trades about 0.11 of its potential returns per unit of risk. Aamg Funds Iv is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,826 in Aamg Funds Iv on November 9, 2024 and sell it today you would earn a total of 69.00 from holding Aamg Funds Iv or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Brandywine vs. Aamg Funds Iv
Performance |
| Timeline |
| Amg Managers Brandywine |
| Aamg Funds Iv |
Amg Managers and Aamg Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Aamg Funds
The main advantage of trading using opposite Amg Managers and Aamg Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Aamg Funds 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 Aamg Funds will offset losses from the drop in Aamg Funds' long position.| Amg Managers vs. Issachar Fund Class | Amg Managers vs. T Rowe Price | Amg Managers vs. Touchstone Funds Group | Amg Managers vs. Franklin Emerging Market |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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