Correlation Between Amg Managers and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Amg Southernsun 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 Amg Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Emerging and Amg Southernsun Small, you can compare the effects of market volatilities on Amg Managers and Amg Southernsun 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 Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Amg Southernsun.
Diversification Opportunities for Amg Managers and Amg Southernsun
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and Amg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Emerging and Amg Southernsun Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun 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 Emerging are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Small has no effect on the direction of Amg Managers i.e., Amg Managers and Amg Southernsun go up and down completely randomly.
Pair Corralation between Amg Managers and Amg Southernsun
Assuming the 90 days horizon Amg Managers Emerging is expected to under-perform the Amg Southernsun. In addition to that, Amg Managers is 1.09 times more volatile than Amg Southernsun Small. It trades about -0.02 of its total potential returns per unit of risk. Amg Southernsun Small is currently generating about 0.01 per unit of volatility. If you would invest 3,095 in Amg Southernsun Small on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Amg Southernsun Small or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Emerging vs. Amg Southernsun Small
Performance |
| Timeline |
| Amg Managers Emerging |
| Amg Southernsun Small |
Amg Managers and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Amg Southernsun
The main advantage of trading using opposite Amg Managers and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| Amg Managers vs. Amg Fq Long Short | Amg Managers vs. Amg Frontier Small | Amg Managers vs. Perritt Microcap Opportunities | Amg Managers vs. Amg Managers Emerging |
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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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