Correlation Between Amg Managers and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Champlain Mid 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 Champlain Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Cadence and Champlain Mid Cap, you can compare the effects of market volatilities on Amg Managers and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Champlain Mid.
Diversification Opportunities for Amg Managers and Champlain Mid
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Champlain is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid Cap 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 Cadence are associated (or correlated) with Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Amg Managers i.e., Amg Managers and Champlain Mid go up and down completely randomly.
Pair Corralation between Amg Managers and Champlain Mid
Assuming the 90 days horizon Amg Managers Cadence is expected to under-perform the Champlain Mid. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Cadence is 1.1 times less risky than Champlain Mid. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Champlain Mid Cap is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,470 in Champlain Mid Cap on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Champlain Mid Cap or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Cadence vs. Champlain Mid Cap
Performance |
| Timeline |
| Amg Managers Cadence |
| Champlain Mid Cap |
Amg Managers and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Champlain Mid
The main advantage of trading using opposite Amg Managers and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid's long position.| Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International |
| Champlain Mid vs. Blackrock Bd Fd | Champlain Mid vs. Artisan Mid Cap | Champlain Mid vs. T Rowe Price | Champlain Mid vs. Baird Short Term Bond |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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