Correlation Between Amg Managers and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Asg Managed 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 Managers and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Montag and Asg Managed Futures, you can compare the effects of market volatilities on Amg Managers and Asg Managed 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 Managers with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Asg Managed.
Diversification Opportunities for Amg Managers and Asg Managed
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Asg is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Montag and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Amg Managers 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 Managers Montag are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Amg Managers i.e., Amg Managers and Asg Managed go up and down completely randomly.
Pair Corralation between Amg Managers and Asg Managed
Assuming the 90 days horizon Amg Managers Montag is expected to generate 1.6 times more return on investment than Asg Managed. However, Amg Managers is 1.6 times more volatile than Asg Managed Futures. It trades about 0.18 of its potential returns per unit of risk. Asg Managed Futures is currently generating about 0.05 per unit of risk. If you would invest 1,416 in Amg Managers Montag on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Amg Managers Montag or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg Managers Montag vs. Asg Managed Futures
Performance |
| Timeline |
| Amg Managers Montag |
| Asg Managed Futures |
Amg Managers and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Asg Managed
The main advantage of trading using opposite Amg Managers and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Amg Managers vs. American Funds The | Amg Managers vs. American Funds The | Amg Managers vs. Growth Fund Of | Amg Managers vs. Growth Fund Of |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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