Correlation Between Cambiar Opportunity and Amg Timessquare
Can any of the company-specific risk be diversified away by investing in both Cambiar Opportunity 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 Cambiar Opportunity and Amg Timessquare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Opportunity Fund and Amg Timessquare Mid, you can compare the effects of market volatilities on Cambiar Opportunity 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 Cambiar Opportunity with a short position of Amg Timessquare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Opportunity and Amg Timessquare.
Diversification Opportunities for Cambiar Opportunity and Amg Timessquare
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cambiar and Amg is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Opportunity Fund and Amg Timessquare Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Timessquare Mid and Cambiar Opportunity 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 Cambiar Opportunity Fund 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 Mid has no effect on the direction of Cambiar Opportunity i.e., Cambiar Opportunity and Amg Timessquare go up and down completely randomly.
Pair Corralation between Cambiar Opportunity and Amg Timessquare
Assuming the 90 days horizon Cambiar Opportunity is expected to generate 2.04 times less return on investment than Amg Timessquare. But when comparing it to its historical volatility, Cambiar Opportunity Fund is 1.29 times less risky than Amg Timessquare. It trades about 0.15 of its potential returns per unit of risk. Amg Timessquare Mid is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Amg Timessquare Mid on August 27, 2024 and sell it today you would earn a total of 98.00 from holding Amg Timessquare Mid or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambiar Opportunity Fund vs. Amg Timessquare Mid
Performance |
| Timeline |
| Cambiar Opportunity |
| Amg Timessquare Mid |
Cambiar Opportunity and Amg Timessquare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Opportunity and Amg Timessquare
The main advantage of trading using opposite Cambiar Opportunity and Amg Timessquare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Opportunity 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.| Cambiar Opportunity vs. Cambiar International Equity | Cambiar Opportunity vs. Cambiar Small Cap | Cambiar Opportunity vs. Cambiar Smid Fund | Cambiar Opportunity vs. Cambiar Small Cap |
| Amg Timessquare vs. Classic Value Fund | Amg Timessquare vs. Invesco Global Real | Amg Timessquare vs. Cambiar Opportunity Fund | Amg Timessquare vs. Touchstone Sustainability And |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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