Correlation Between Amg Managers and First Eagle
Can any of the company-specific risk be diversified away by investing in both Amg Managers and First Eagle 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 First Eagle 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 First Eagle Gold, you can compare the effects of market volatilities on Amg Managers and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and First Eagle.
Diversification Opportunities for Amg Managers and First Eagle
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amg and First is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Amg Managers i.e., Amg Managers and First Eagle go up and down completely randomly.
Pair Corralation between Amg Managers and First Eagle
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.75 times more return on investment than First Eagle. However, Amg Managers Centersquare is 1.34 times less risky than First Eagle. It trades about 0.04 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.03 per unit of risk. If you would invest 961.00 in Amg Managers Centersquare on September 14, 2024 and sell it today you would earn a total of 232.00 from holding Amg Managers Centersquare or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. First Eagle Gold
Performance |
| Timeline |
| Amg Managers Centersquare |
| First Eagle Gold |
Amg Managers and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and First Eagle
The main advantage of trading using opposite Amg Managers and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Amg Managers vs. Transamerica Financial Life | Amg Managers vs. Fidelity Advisor Financial | Amg Managers vs. Icon Financial Fund | Amg Managers vs. Blackrock Financial Institutions |
| First Eagle vs. Deutsche Real Estate | First Eagle vs. Tiaa Cref Real Estate | First Eagle vs. Dunham Real Estate | First Eagle vs. Amg Managers Centersquare |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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