Correlation Between Gmo Treasury and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Gmo Treasury 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 Gmo Treasury and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo Treasury Fund and Amg Managers Fairpointe, you can compare the effects of market volatilities on Gmo Treasury 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 Gmo Treasury with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo Treasury and Amg Managers.
Diversification Opportunities for Gmo Treasury and Amg Managers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gmo and Amg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Treasury Fund 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 Gmo Treasury 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 Gmo Treasury Fund 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 Gmo Treasury i.e., Gmo Treasury and Amg Managers go up and down completely randomly.
Pair Corralation between Gmo Treasury and Amg Managers
If you would invest 2,420 in Amg Managers Fairpointe on September 2, 2024 and sell it today you would earn a total of 196.00 from holding Amg Managers Fairpointe or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo Treasury Fund vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Gmo Treasury |
| Amg Managers Fairpointe |
Gmo Treasury and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo Treasury and Amg Managers
The main advantage of trading using opposite Gmo Treasury and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo Treasury 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.| Gmo Treasury vs. Ab Small Cap | Gmo Treasury vs. Fisher Small Cap | Gmo Treasury vs. Us Small Cap | Gmo Treasury vs. Legg Mason Partners |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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