Correlation Between Live Oak and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Live Oak 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 Live Oak and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Amg Managers Fairpointe, you can compare the effects of market volatilities on Live Oak 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 Live Oak with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Amg Managers.
Diversification Opportunities for Live Oak and Amg Managers
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Amg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health 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 Live Oak 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 Live Oak Health 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 Live Oak i.e., Live Oak and Amg Managers go up and down completely randomly.
Pair Corralation between Live Oak and Amg Managers
Assuming the 90 days horizon Live Oak Health is expected to under-perform the Amg Managers. In addition to that, Live Oak is 1.19 times more volatile than Amg Managers Fairpointe. It trades about -0.31 of its total potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.02 per unit of volatility. If you would invest 2,564 in Amg Managers Fairpointe on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Amg Managers Fairpointe or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Live Oak Health |
| Amg Managers Fairpointe |
Live Oak and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Amg Managers
The main advantage of trading using opposite Live Oak and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak 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.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Amg Managers vs. Lebenthal Lisanti Small | Amg Managers vs. Smallcap Growth Fund | Amg Managers vs. Small Pany Growth | Amg Managers vs. Mutual Of America |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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