Correlation Between Affiliated Managers and United States
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers and United States 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 Affiliated Managers and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group, and United States Cellular, you can compare the effects of market volatilities on Affiliated Managers and United States 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 Affiliated Managers with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and United States.
Diversification Opportunities for Affiliated Managers and United States
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Affiliated and United is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group, and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular and Affiliated 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 Affiliated Managers Group, are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of Affiliated Managers i.e., Affiliated Managers and United States go up and down completely randomly.
Pair Corralation between Affiliated Managers and United States
Given the investment horizon of 90 days Affiliated Managers Group, is expected to under-perform the United States. In addition to that, Affiliated Managers is 1.57 times more volatile than United States Cellular. It trades about -0.17 of its total potential returns per unit of risk. United States Cellular is currently generating about 0.09 per unit of volatility. If you would invest 2,259 in United States Cellular on August 28, 2024 and sell it today you would earn a total of 26.00 from holding United States Cellular or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affiliated Managers Group, vs. United States Cellular
Performance |
| Timeline |
| Affiliated Managers |
| United States Cellular |
Affiliated Managers and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and United States
The main advantage of trading using opposite Affiliated Managers and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Affiliated Managers vs. Affiliated Managers Group | Affiliated Managers vs. Southern Company Series | Affiliated Managers vs. DTE Energy | Affiliated Managers vs. United States Cellular |
| United States vs. United States Cellular | United States vs. United States Cellular | United States vs. Office Properties Income | United States vs. Southern Company Series |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |