Correlation Between Perkins Mid and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Perkins Mid 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 Perkins Mid and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Mid Cap and Amg Managers Fairpointe, you can compare the effects of market volatilities on Perkins Mid 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 Perkins Mid with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Mid and Amg Managers.
Diversification Opportunities for Perkins Mid and Amg Managers
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Perkins and Amg is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Mid Cap 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 Perkins Mid 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 Perkins Mid 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 Fairpointe has no effect on the direction of Perkins Mid i.e., Perkins Mid and Amg Managers go up and down completely randomly.
Pair Corralation between Perkins Mid and Amg Managers
Assuming the 90 days horizon Perkins Mid Cap is expected to generate 0.93 times more return on investment than Amg Managers. However, Perkins Mid Cap is 1.07 times less risky than Amg Managers. It trades about 0.26 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.2 per unit of risk. If you would invest 1,574 in Perkins Mid Cap on October 26, 2024 and sell it today you would earn a total of 48.00 from holding Perkins Mid Cap or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perkins Mid Cap vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Perkins Mid Cap |
| Amg Managers Fairpointe |
Perkins Mid and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perkins Mid and Amg Managers
The main advantage of trading using opposite Perkins Mid and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Mid 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.| Perkins Mid vs. Janus Trarian Fund | Perkins Mid vs. Janus Overseas Fund | Perkins Mid vs. Janus Growth And | Perkins Mid vs. Janus Global Select |
| Amg Managers vs. Amg Yacktman Focused | Amg Managers vs. Heartland Value Plus | Amg Managers vs. Common Stock Fund | Amg Managers vs. Perkins Mid 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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