Correlation Between Amg Managers and Jackson Square
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Jackson Square 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 Jackson Square 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 Jackson Square Smid Cap, you can compare the effects of market volatilities on Amg Managers and Jackson Square 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 Jackson Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Jackson Square.
Diversification Opportunities for Amg Managers and Jackson Square
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and JACKSON is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence and Jackson Square Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Square Smid 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 Jackson Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Square Smid has no effect on the direction of Amg Managers i.e., Amg Managers and Jackson Square go up and down completely randomly.
Pair Corralation between Amg Managers and Jackson Square
Assuming the 90 days horizon Amg Managers is expected to generate 1.59 times less return on investment than Jackson Square. But when comparing it to its historical volatility, Amg Managers Cadence is 1.46 times less risky than Jackson Square. It trades about 0.03 of its potential returns per unit of risk. Jackson Square Smid Cap is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Jackson Square Smid Cap on September 4, 2024 and sell it today you would earn a total of 286.00 from holding Jackson Square Smid Cap or generate 16.73% 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. Jackson Square Smid Cap
Performance |
| Timeline |
| Amg Managers Cadence |
| Jackson Square Smid |
Amg Managers and Jackson Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Jackson Square
The main advantage of trading using opposite Amg Managers and Jackson Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Jackson Square 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 Jackson Square will offset losses from the drop in Jackson Square's long position.| Amg Managers vs. Amg Managers Cadence | Amg Managers vs. Baron Discovery Fund | Amg Managers vs. Virtus Kar Small Cap | Amg Managers vs. Champlain Mid Cap |
| Jackson Square vs. Franklin Growth Fund | Jackson Square vs. Janus Venture Fund | Jackson Square vs. Jackson Square Smid Cap | Jackson Square vs. Pimco 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |