Correlation Between Amg Managers and Selected International
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Selected International 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 Selected International 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 Selected International Fund, you can compare the effects of market volatilities on Amg Managers and Selected International 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 Selected International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Selected International.
Diversification Opportunities for Amg Managers and Selected International
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Selected is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Brandywine and Selected International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected International 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 Selected International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected International has no effect on the direction of Amg Managers i.e., Amg Managers and Selected International go up and down completely randomly.
Pair Corralation between Amg Managers and Selected International
Assuming the 90 days horizon Amg Managers Brandywine is expected to under-perform the Selected International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Brandywine is 1.7 times less risky than Selected International. The mutual fund trades about -0.07 of its potential returns per unit of risk. The Selected International Fund is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,191 in Selected International Fund on November 28, 2024 and sell it today you would earn a total of 52.00 from holding Selected International Fund or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Brandywine vs. Selected International Fund
Performance |
| Timeline |
| Amg Managers Brandywine |
| Selected International |
Amg Managers and Selected International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Selected International
The main advantage of trading using opposite Amg Managers and Selected International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Selected International 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 Selected International will offset losses from the drop in Selected International's long position.| Amg Managers vs. Oklahoma College Savings | Amg Managers vs. Qs Growth Fund | Amg Managers vs. Templeton Growth Fund | Amg Managers vs. Ab Centrated International |
| Selected International vs. Selected American Shares | Selected International vs. Selected International Fund | Selected International vs. Hodges Fund Retail | Selected International vs. Marsico Global 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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