Correlation Between Amg Managers and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Emerging Markets 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 Emerging Markets 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 Emerging Markets Leaders, you can compare the effects of market volatilities on Amg Managers and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Emerging Markets.
Diversification Opportunities for Amg Managers and Emerging Markets
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Emerging is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Emerging Markets Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Leaders 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Leaders has no effect on the direction of Amg Managers i.e., Amg Managers and Emerging Markets go up and down completely randomly.
Pair Corralation between Amg Managers and Emerging Markets
If you would invest 1,194 in Amg Managers Centersquare on September 4, 2024 and sell it today you would earn a total of 46.00 from holding Amg Managers Centersquare or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Emerging Markets Leaders
Performance |
| Timeline |
| Amg Managers Centersquare |
| Emerging Markets Leaders |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amg Managers and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Emerging Markets
The main advantage of trading using opposite Amg Managers and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Amg Managers vs. The Fixed Income | Amg Managers vs. Multimedia Portfolio Multimedia | Amg Managers vs. Artisan Select Equity | Amg Managers vs. Ab Select Equity |
| Emerging Markets vs. Amg Managers Centersquare | Emerging Markets vs. Columbia Real Estate | Emerging Markets vs. Commonwealth Real Estate | Emerging Markets vs. Vanguard Reit Index |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |