Correlation Between Financial Industries and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Financial Industries 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 Financial Industries and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial Industries Fund and Amg Managers Centersquare, you can compare the effects of market volatilities on Financial Industries 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 Financial Industries with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Industries and Amg Managers.
Diversification Opportunities for Financial Industries and Amg Managers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Financial and Amg is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Financial Industries Fund 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 Financial Industries 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 Financial Industries 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 Centersquare has no effect on the direction of Financial Industries i.e., Financial Industries and Amg Managers go up and down completely randomly.
Pair Corralation between Financial Industries and Amg Managers
Assuming the 90 days horizon Financial Industries Fund is expected to generate 2.01 times more return on investment than Amg Managers. However, Financial Industries is 2.01 times more volatile than Amg Managers Centersquare. It trades about 0.29 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.22 per unit of risk. If you would invest 1,900 in Financial Industries Fund on September 1, 2024 and sell it today you would earn a total of 228.00 from holding Financial Industries Fund or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Financial Industries Fund vs. Amg Managers Centersquare
Performance |
| Timeline |
| Financial Industries |
| Amg Managers Centersquare |
Financial Industries and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Industries and Amg Managers
The main advantage of trading using opposite Financial Industries and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Industries 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.The idea behind Financial Industries Fund and Amg Managers Centersquare pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Amg Managers vs. Hennessy Technology Fund | Amg Managers vs. Pgim Jennison Technology | Amg Managers vs. Biotechnology Ultrasector Profund | Amg Managers vs. Technology Ultrasector Profund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |