Correlation Between Hussman Strategic and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Hussman Strategic and Amg Yacktman 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 Hussman Strategic and Amg Yacktman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hussman Strategic Total and Amg Yacktman Fund, you can compare the effects of market volatilities on Hussman Strategic and Amg Yacktman 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 Hussman Strategic with a short position of Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hussman Strategic and Amg Yacktman.
Diversification Opportunities for Hussman Strategic and Amg Yacktman
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hussman and Amg is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hussman Strategic Total and Amg Yacktman Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman and Hussman Strategic 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 Hussman Strategic Total are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman has no effect on the direction of Hussman Strategic i.e., Hussman Strategic and Amg Yacktman go up and down completely randomly.
Pair Corralation between Hussman Strategic and Amg Yacktman
Assuming the 90 days horizon Hussman Strategic Total is expected to under-perform the Amg Yacktman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Hussman Strategic Total is 1.24 times less risky than Amg Yacktman. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Amg Yacktman Fund is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,520 in Amg Yacktman Fund on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Amg Yacktman Fund or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hussman Strategic Total vs. Amg Yacktman Fund
Performance |
| Timeline |
| Hussman Strategic Total |
| Amg Yacktman |
Hussman Strategic and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hussman Strategic and Amg Yacktman
The main advantage of trading using opposite Hussman Strategic and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hussman Strategic position performs unexpectedly, Amg Yacktman 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 Yacktman will offset losses from the drop in Amg Yacktman's long position.| Hussman Strategic vs. L Abbett Growth | Hussman Strategic vs. Growth Fund Of | Hussman Strategic vs. Champlain Mid Cap | Hussman Strategic vs. Chase Growth Fund |
| Amg Yacktman vs. Amg Southernsun Equity | Amg Yacktman vs. Amg Southernsun Equity | Amg Yacktman vs. Amg Southernsun Small | Amg Yacktman vs. Amg Southernsun Small |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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