Correlation Between Amg Managers and Virtus Kar
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Virtus Kar 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 Virtus Kar 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 Virtus Kar Small Cap, you can compare the effects of market volatilities on Amg Managers and Virtus Kar 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 Virtus Kar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Virtus Kar.
Diversification Opportunities for Amg Managers and Virtus Kar
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Virtus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence and Virtus Kar Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Kar Small 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 Virtus Kar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Kar Small has no effect on the direction of Amg Managers i.e., Amg Managers and Virtus Kar go up and down completely randomly.
Pair Corralation between Amg Managers and Virtus Kar
Assuming the 90 days horizon Amg Managers Cadence is expected to under-perform the Virtus Kar. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Cadence is 1.4 times less risky than Virtus Kar. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Virtus Kar Small Cap is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,682 in Virtus Kar Small Cap on September 3, 2024 and sell it today you would earn a total of 710.00 from holding Virtus Kar Small Cap or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Cadence vs. Virtus Kar Small Cap
Performance |
| Timeline |
| Amg Managers Cadence |
| Virtus Kar Small |
Amg Managers and Virtus Kar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Virtus Kar
The main advantage of trading using opposite Amg Managers and Virtus Kar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Virtus Kar 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 Virtus Kar will offset losses from the drop in Virtus Kar'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 |
| Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Mid Cap | Virtus Kar vs. Virtus International Small Cap | Virtus Kar vs. Virtus Kar Small 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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