Correlation Between Johcm International and Amg River
Can any of the company-specific risk be diversified away by investing in both Johcm International and Amg River 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 Johcm International and Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johcm International Select and Amg River Road, you can compare the effects of market volatilities on Johcm International and Amg River 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 Johcm International with a short position of Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johcm International and Amg River.
Diversification Opportunities for Johcm International and Amg River
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Johcm and Amg is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Johcm International Select and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road and Johcm International 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 Johcm International Select are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Johcm International i.e., Johcm International and Amg River go up and down completely randomly.
Pair Corralation between Johcm International and Amg River
Assuming the 90 days horizon Johcm International Select is expected to under-perform the Amg River. But the mutual fund apears to be less risky and, when comparing its historical volatility, Johcm International Select is 1.14 times less risky than Amg River. The mutual fund trades about -0.22 of its potential returns per unit of risk. The Amg River Road is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Amg River Road on August 30, 2024 and sell it today you would earn a total of 108.00 from holding Amg River Road or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johcm International Select vs. Amg River Road
Performance |
| Timeline |
| Johcm International |
| Amg River Road |
Johcm International and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johcm International and Amg River
The main advantage of trading using opposite Johcm International and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johcm International position performs unexpectedly, Amg River 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 River will offset losses from the drop in Amg River's long position.| Johcm International vs. Europacific Growth Fund | Johcm International vs. Europacific Growth Fund | Johcm International vs. Europacific Growth Fund | Johcm International vs. Europacific Growth Fund |
| Amg River vs. Champlain Mid Cap | Amg River vs. Johcm Emerging Markets | Amg River vs. Walden Smid Cap | Amg River vs. American Beacon Stephens |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |