Correlation Between Mutual Of and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Amg Managers Fairpointe, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Amg Managers.
Diversification Opportunities for Mutual Of and Amg Managers
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mutual and Amg is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America 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 Mutual Of 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 Mutual Of America 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 Mutual Of i.e., Mutual Of and Amg Managers go up and down completely randomly.
Pair Corralation between Mutual Of and Amg Managers
Assuming the 90 days horizon Mutual Of America is expected to generate 1.41 times more return on investment than Amg Managers. However, Mutual Of is 1.41 times more volatile than Amg Managers Fairpointe. It trades about 0.06 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.09 per unit of risk. If you would invest 1,369 in Mutual Of America on September 14, 2024 and sell it today you would earn a total of 255.00 from holding Mutual Of America or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mutual Of America vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Mutual Of America |
| Amg Managers Fairpointe |
Mutual Of and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Amg Managers
The main advantage of trading using opposite Mutual Of and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. Jpmorgan Diversified Fund | Mutual Of vs. Wilmington Diversified Income | Mutual Of vs. Allianzgi Diversified Income | Mutual Of vs. Blackrock Conservative Prprdptfinstttnl |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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