Correlation Between Hunter Small and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Hunter 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 Hunter 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 Hunter Small Cap and Amg Managers Doubleline, you can compare the effects of market volatilities on Hunter 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 Hunter Small with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Amg Managers.
Diversification Opportunities for Hunter Small and Amg Managers
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunter and Amg is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Amg Managers Doubleline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Doubleline and Hunter 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 Hunter Small Cap 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 Doubleline has no effect on the direction of Hunter Small i.e., Hunter Small and Amg Managers go up and down completely randomly.
Pair Corralation between Hunter Small and Amg Managers
Assuming the 90 days horizon Hunter Small Cap is expected to generate 3.28 times more return on investment than Amg Managers. However, Hunter Small is 3.28 times more volatile than Amg Managers Doubleline. It trades about 0.02 of its potential returns per unit of risk. Amg Managers Doubleline is currently generating about -0.04 per unit of risk. If you would invest 1,268 in Hunter Small Cap on October 26, 2024 and sell it today you would earn a total of 14.00 from holding Hunter Small Cap or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Amg Managers Doubleline
Performance |
| Timeline |
| Hunter Small Cap |
| Amg Managers Doubleline |
Hunter Small and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Amg Managers
The main advantage of trading using opposite Hunter Small and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter 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.| Hunter Small vs. Jhancock Diversified Macro | Hunter Small vs. Tax Free Conservative Income | Hunter Small vs. Delaware Limited Term Diversified | Hunter Small vs. Lord Abbett Diversified |
| Amg Managers vs. Hunter Small Cap | Amg Managers vs. Goldman Sachs Smallmid | Amg Managers vs. Franklin Small Cap | Amg Managers vs. Ab 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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