Correlation Between Amg Managers and Columbia Real
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Columbia Real 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 Real 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 Real Estate, you can compare the effects of market volatilities on Amg Managers and Columbia Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Columbia Real.
Diversification Opportunities for Amg Managers and Columbia Real
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Columbia is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Columbia Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Real Estate 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 Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Real Estate has no effect on the direction of Amg Managers i.e., Amg Managers and Columbia Real go up and down completely randomly.
Pair Corralation between Amg Managers and Columbia Real
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.98 times more return on investment than Columbia Real. However, Amg Managers Centersquare is 1.02 times less risky than Columbia Real. It trades about -0.02 of its potential returns per unit of risk. Columbia Real Estate is currently generating about -0.03 per unit of risk. If you would invest 1,228 in Amg Managers Centersquare on September 12, 2024 and sell it today you would lose (13.00) from holding Amg Managers Centersquare or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Columbia Real Estate
Performance |
| Timeline |
| Amg Managers Centersquare |
| Columbia Real Estate |
Amg Managers and Columbia Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Columbia Real
The main advantage of trading using opposite Amg Managers and Columbia Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Columbia Real 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 Real will offset losses from the drop in Columbia Real's long position.| Amg Managers vs. Realty Income | Amg Managers vs. Dynex Capital | Amg Managers vs. First Industrial Realty | Amg Managers vs. Healthcare Realty Trust |
| Columbia Real vs. Rbc Microcap Value | Columbia Real vs. T Rowe Price | Columbia Real vs. Falcon Focus Scv | Columbia Real vs. Iaadx |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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