Correlation Between Champlain Small and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Amg Managers 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 Champlain Small and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Amg Managers Fairpointe, you can compare the effects of market volatilities on Champlain Small and Amg Managers 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 Champlain Small with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Amg Managers.
Diversification Opportunities for Champlain Small and Amg Managers
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Amg is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe and Champlain Small 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 Champlain Small are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Champlain Small i.e., Champlain Small and Amg Managers go up and down completely randomly.
Pair Corralation between Champlain Small and Amg Managers
Assuming the 90 days horizon Champlain Small is expected to generate 1.58 times more return on investment than Amg Managers. However, Champlain Small is 1.58 times more volatile than Amg Managers Fairpointe. It trades about 0.3 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.29 per unit of risk. If you would invest 2,312 in Champlain Small on August 27, 2024 and sell it today you would earn a total of 234.00 from holding Champlain Small or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Champlain Small |
| Amg Managers Fairpointe |
Champlain Small and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Amg Managers
The main advantage of trading using opposite Champlain Small and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Amg Managers 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 Managers will offset losses from the drop in Amg Managers' long position.| Champlain Small vs. Washington Mutual Investors | Champlain Small vs. Baron Emerging Markets | Champlain Small vs. Aquagold International | Champlain Small vs. Morningstar Unconstrained Allocation |
| Amg Managers vs. Champlain Small | Amg Managers vs. Touchstone Small Cap | Amg Managers vs. Tax Managed Mid Small | Amg Managers vs. Kinetics Small Cap |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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