Correlation Between Amg Managers and Columbia Porate
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Columbia Porate 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 Columbia Porate 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 Columbia Porate Income, you can compare the effects of market volatilities on Amg Managers and Columbia Porate 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 Columbia Porate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Columbia Porate.
Diversification Opportunities for Amg Managers and Columbia Porate
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and Columbia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Columbia Porate Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Porate Income 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 Columbia Porate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Porate Income has no effect on the direction of Amg Managers i.e., Amg Managers and Columbia Porate go up and down completely randomly.
Pair Corralation between Amg Managers and Columbia Porate
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 2.61 times more return on investment than Columbia Porate. However, Amg Managers is 2.61 times more volatile than Columbia Porate Income. It trades about 0.04 of its potential returns per unit of risk. Columbia Porate Income is currently generating about 0.02 per unit of risk. If you would invest 987.00 in Amg Managers Centersquare on September 5, 2024 and sell it today you would earn a total of 236.00 from holding Amg Managers Centersquare or generate 23.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.57% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Columbia Porate Income
Performance |
| Timeline |
| Amg Managers Centersquare |
| Columbia Porate Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amg Managers and Columbia Porate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Columbia Porate
The main advantage of trading using opposite Amg Managers and Columbia Porate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Columbia Porate 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 Columbia Porate will offset losses from the drop in Columbia Porate's long position.| Amg Managers vs. Advent Claymore Convertible | Amg Managers vs. Putnam Convertible Incm Gwth | Amg Managers vs. Virtus Convertible | Amg Managers vs. Absolute Convertible Arbitrage |
| Columbia Porate vs. T Rowe Price | Columbia Porate vs. Virtus High Yield | Columbia Porate vs. Pgim High Yield | Columbia Porate vs. Calvert High Yield |
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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