Correlation Between Amg Managers and American Funds
Can any of the company-specific risk be diversified away by investing in both Amg Managers and American Funds 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 American Funds 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 American Funds American, you can compare the effects of market volatilities on Amg Managers and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and American Funds.
Diversification Opportunities for Amg Managers and American Funds
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and American is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and American Funds American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds American 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds American has no effect on the direction of Amg Managers i.e., Amg Managers and American Funds go up and down completely randomly.
Pair Corralation between Amg Managers and American Funds
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 5.37 times more return on investment than American Funds. However, Amg Managers is 5.37 times more volatile than American Funds American. It trades about 0.07 of its potential returns per unit of risk. American Funds American is currently generating about 0.2 per unit of risk. If you would invest 1,197 in Amg Managers Centersquare on September 2, 2024 and sell it today you would earn a total of 43.00 from holding Amg Managers Centersquare or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. American Funds American
Performance |
| Timeline |
| Amg Managers Centersquare |
| American Funds American |
Amg Managers and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and American Funds
The main advantage of trading using opposite Amg Managers and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Amg Managers vs. Fidelity Series 1000 | Amg Managers vs. Qs Large Cap | Amg Managers vs. John Hancock Investment | Amg Managers vs. Large Cap Growth Profund |
| American Funds vs. Adams Diversified Equity | American Funds vs. Aqr Diversified Arbitrage | American Funds vs. Pimco Diversified Income | American Funds vs. Evaluator Conservative Rms |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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