Correlation Between Amg Managers and Ab Global
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Ab Global 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 Ab Global 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 Ab Global Bond, you can compare the effects of market volatilities on Amg Managers and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Ab Global.
Diversification Opportunities for Amg Managers and Ab Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and ANAZX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Amg Managers i.e., Amg Managers and Ab Global go up and down completely randomly.
Pair Corralation between Amg Managers and Ab Global
Assuming the 90 days horizon Amg Managers Centersquare is expected to under-perform the Ab Global. In addition to that, Amg Managers is 4.34 times more volatile than Ab Global Bond. It trades about -0.02 of its total potential returns per unit of risk. Ab Global Bond is currently generating about 0.02 per unit of volatility. If you would invest 694.00 in Ab Global Bond on December 3, 2024 and sell it today you would earn a total of 2.00 from holding Ab Global Bond or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Ab Global Bond
Performance |
| Timeline |
| Amg Managers Centersquare |
| Ab Global Bond |
Amg Managers and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Ab Global
The main advantage of trading using opposite Amg Managers and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Amg Managers vs. Flexible Bond Portfolio | ||
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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