Correlation Between Federated Global and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Federated Global 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 Federated Global and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Amg Managers Centersquare, you can compare the effects of market volatilities on Federated Global 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 Federated Global with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Amg Managers.
Diversification Opportunities for Federated Global and Amg Managers
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FEDERATED and Amg is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Federated Global 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 Federated Global Allocation 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 Centersquare has no effect on the direction of Federated Global i.e., Federated Global and Amg Managers go up and down completely randomly.
Pair Corralation between Federated Global and Amg Managers
Assuming the 90 days horizon Federated Global Allocation is expected to generate 0.49 times more return on investment than Amg Managers. However, Federated Global Allocation is 2.05 times less risky than Amg Managers. It trades about -0.08 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about -0.14 per unit of risk. If you would invest 1,973 in Federated Global Allocation on October 17, 2024 and sell it today you would lose (51.00) from holding Federated Global Allocation or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Federated Global Allocation vs. Amg Managers Centersquare
Performance |
| Timeline |
| Federated Global All |
| Amg Managers Centersquare |
Federated Global and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Amg Managers
The main advantage of trading using opposite Federated Global and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global 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.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond Fund |
| Amg Managers vs. Us Global Investors | Amg Managers vs. Rbb Fund Trust | Amg Managers vs. Legg Mason Global | Amg Managers vs. Federated Global Allocation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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