Correlation Between Amg Managers and Federated Clover
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Federated Clover 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 Federated Clover into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Federated Clover Small, you can compare the effects of market volatilities on Amg Managers and Federated Clover 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 Federated Clover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Federated Clover.
Diversification Opportunities for Amg Managers and Federated Clover
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Federated is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Federated Clover Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Clover 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 Centersquare are associated (or correlated) with Federated Clover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Clover Small has no effect on the direction of Amg Managers i.e., Amg Managers and Federated Clover go up and down completely randomly.
Pair Corralation between Amg Managers and Federated Clover
Assuming the 90 days horizon Amg Managers is expected to generate 1.77 times less return on investment than Federated Clover. In addition to that, Amg Managers is 1.2 times more volatile than Federated Clover Small. It trades about 0.06 of its total potential returns per unit of risk. Federated Clover Small is currently generating about 0.13 per unit of volatility. If you would invest 2,132 in Federated Clover Small on November 3, 2024 and sell it today you would earn a total of 58.00 from holding Federated Clover Small or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Federated Clover Small
Performance |
| Timeline |
| Amg Managers Centersquare |
| Federated Clover Small |
Amg Managers and Federated Clover Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Federated Clover
The main advantage of trading using opposite Amg Managers and Federated Clover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Federated Clover 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 Federated Clover will offset losses from the drop in Federated Clover's long position.| Amg Managers vs. Old Westbury California | Amg Managers vs. Ab Bond Inflation | Amg Managers vs. Ab Global Bond | Amg Managers vs. Dreyfusstandish Global Fixed |
| Federated Clover vs. Dreyfus Technology Growth | Federated Clover vs. Firsthand Technology Opportunities | Federated Clover vs. Icon Information Technology | Federated Clover vs. Invesco Technology Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |