Correlation Between Amg Managers and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Nuveen Minnesota 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 Nuveen Minnesota 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 Nuveen Minnesota Intermediate, you can compare the effects of market volatilities on Amg Managers and Nuveen Minnesota 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 Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Nuveen Minnesota.
Diversification Opportunities for Amg Managers and Nuveen Minnesota
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Nuveen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Nuveen Minnesota Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Int 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 Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Int has no effect on the direction of Amg Managers i.e., Amg Managers and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Amg Managers and Nuveen Minnesota
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 5.35 times more return on investment than Nuveen Minnesota. However, Amg Managers is 5.35 times more volatile than Nuveen Minnesota Intermediate. It trades about 0.18 of its potential returns per unit of risk. Nuveen Minnesota Intermediate is currently generating about 0.16 per unit of risk. If you would invest 1,030 in Amg Managers Centersquare on September 3, 2024 and sell it today you would earn a total of 210.00 from holding Amg Managers Centersquare or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Nuveen Minnesota Intermediate
Performance |
| Timeline |
| Amg Managers Centersquare |
| Nuveen Minnesota Int |
Amg Managers and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Nuveen Minnesota
The main advantage of trading using opposite Amg Managers and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Amg Managers vs. Deutsche Health And | Amg Managers vs. Fidelity Advisor Health | Amg Managers vs. Blackrock Health Sciences | Amg Managers vs. Invesco Global Health |
| Nuveen Minnesota vs. Great West Real Estate | Nuveen Minnesota vs. Amg Managers Centersquare | Nuveen Minnesota vs. Franklin Real Estate | Nuveen Minnesota vs. Goldman Sachs Real |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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