Correlation Between Amg Managers and Real Estate
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Real Estate 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 Real Estate 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 Real Estate Fund, you can compare the effects of market volatilities on Amg Managers and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Real Estate.
Diversification Opportunities for Amg Managers and Real Estate
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Real is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Real Estate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Fund 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Fund has no effect on the direction of Amg Managers i.e., Amg Managers and Real Estate go up and down completely randomly.
Pair Corralation between Amg Managers and Real Estate
Assuming the 90 days horizon Amg Managers is expected to generate 1.01 times less return on investment than Real Estate. In addition to that, Amg Managers is 1.02 times more volatile than Real Estate Fund. It trades about 0.18 of its total potential returns per unit of risk. Real Estate Fund is currently generating about 0.19 per unit of volatility. If you would invest 2,326 in Real Estate Fund on September 1, 2024 and sell it today you would earn a total of 497.00 from holding Real Estate Fund or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Real Estate Fund
Performance |
| Timeline |
| Amg Managers Centersquare |
| Real Estate Fund |
Amg Managers and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Real Estate
The main advantage of trading using opposite Amg Managers and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate's long position.| Amg Managers vs. Hennessy Technology Fund | Amg Managers vs. Pgim Jennison Technology | Amg Managers vs. Biotechnology Ultrasector Profund | Amg Managers vs. Technology Ultrasector Profund |
| Real Estate vs. Multisector Bond Sma | Real Estate vs. Rationalpier 88 Convertible | Real Estate vs. Touchstone Premium Yield | Real Estate vs. Bbh Intermediate Municipal |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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