Correlation Between Amg Managers and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on Amg Managers and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Mainstay Epoch.
Diversification Opportunities for Amg Managers and Mainstay Epoch
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amg and Mainstay is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Amg Managers i.e., Amg Managers and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Amg Managers and Mainstay Epoch
Assuming the 90 days horizon Amg Managers is expected to generate 1.24 times less return on investment than Mainstay Epoch. In addition to that, Amg Managers is 1.79 times more volatile than Mainstay Epoch Global. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.1 per unit of volatility. If you would invest 1,792 in Mainstay Epoch Global on September 5, 2024 and sell it today you would earn a total of 622.00 from holding Mainstay Epoch Global or generate 34.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Mainstay Epoch Global
Performance |
| Timeline |
| Amg Managers Centersquare |
| Mainstay Epoch Global |
Amg Managers and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Mainstay Epoch
The main advantage of trading using opposite Amg Managers and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch'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 |
| Mainstay Epoch vs. Guggenheim Risk Managed | Mainstay Epoch vs. Nuveen Real Estate | Mainstay Epoch vs. Commonwealth Real Estate | Mainstay Epoch vs. Deutsche 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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