Correlation Between Amg Chicago and Boston Trust
Can any of the company-specific risk be diversified away by investing in both Amg Chicago and Boston Trust 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 Amg Chicago and Boston Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Chicago Equity and Boston Trust Asset, you can compare the effects of market volatilities on Amg Chicago and Boston Trust 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 Amg Chicago with a short position of Boston Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Chicago and Boston Trust.
Diversification Opportunities for Amg Chicago and Boston Trust
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Boston is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amg Chicago Equity and Boston Trust Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Trust Asset and Amg Chicago 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 Amg Chicago Equity are associated (or correlated) with Boston Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Trust Asset has no effect on the direction of Amg Chicago i.e., Amg Chicago and Boston Trust go up and down completely randomly.
Pair Corralation between Amg Chicago and Boston Trust
If you would invest 5,985 in Boston Trust Asset on September 1, 2024 and sell it today you would earn a total of 742.00 from holding Boston Trust Asset or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.48% |
| Values | Daily Returns |
Amg Chicago Equity vs. Boston Trust Asset
Performance |
| Timeline |
| Amg Chicago Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boston Trust Asset |
Amg Chicago and Boston Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Chicago and Boston Trust
The main advantage of trading using opposite Amg Chicago and Boston Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Chicago position performs unexpectedly, Boston Trust 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 Boston Trust will offset losses from the drop in Boston Trust's long position.| Amg Chicago vs. James Balanced Golden | Amg Chicago vs. International Investors Gold | Amg Chicago vs. Oppenheimer Gold Special | Amg Chicago vs. Global Gold Fund |
| Boston Trust vs. Walden Asset Management | Boston Trust vs. Boston Trust Midcap | Boston Trust vs. Boston Trust Small | Boston Trust vs. Invesco Disciplined Equity |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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