Correlation Between Amg Managers and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Amg Managers and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Ashmore Emerging.
Diversification Opportunities for Amg Managers and Ashmore Emerging
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Ashmore is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Amg Managers i.e., Amg Managers and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Amg Managers and Ashmore Emerging
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 4.26 times more return on investment than Ashmore Emerging. However, Amg Managers is 4.26 times more volatile than Ashmore Emerging Markets. It trades about 0.04 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.13 per unit of risk. If you would invest 961.00 in Amg Managers Centersquare on September 13, 2024 and sell it today you would earn a total of 236.00 from holding Amg Managers Centersquare or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Amg Managers Centersquare |
| Ashmore Emerging Markets |
Amg Managers and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Ashmore Emerging
The main advantage of trading using opposite Amg Managers and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging'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 |
| Ashmore Emerging vs. Amg Managers Centersquare | Ashmore Emerging vs. Forum Real Estate | Ashmore Emerging vs. Fidelity Real Estate | Ashmore Emerging vs. Prudential Real Estate |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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