Correlation Between Amg Managers and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Aberdeen Gbl 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 Aberdeen Gbl 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 Aberdeen Gbl Eq, you can compare the effects of market volatilities on Amg Managers and Aberdeen Gbl 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 Aberdeen Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Aberdeen Gbl.
Diversification Opportunities for Amg Managers and Aberdeen Gbl
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amg and Aberdeen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Aberdeen Gbl Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Eq 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 Aberdeen Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Eq has no effect on the direction of Amg Managers i.e., Amg Managers and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Amg Managers and Aberdeen Gbl
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 1.37 times more return on investment than Aberdeen Gbl. However, Amg Managers is 1.37 times more volatile than Aberdeen Gbl Eq. It trades about -0.01 of its potential returns per unit of risk. Aberdeen Gbl Eq is currently generating about -0.16 per unit of risk. If you would invest 1,225 in Amg Managers Centersquare on August 28, 2024 and sell it today you would lose (7.00) from holding Amg Managers Centersquare or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Aberdeen Gbl Eq
Performance |
| Timeline |
| Amg Managers Centersquare |
| Aberdeen Gbl Eq |
Amg Managers and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Aberdeen Gbl
The main advantage of trading using opposite Amg Managers and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Aberdeen Gbl 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 Aberdeen Gbl will offset losses from the drop in Aberdeen Gbl's long position.| Amg Managers vs. T Rowe Price | Amg Managers vs. L Abbett Fundamental | Amg Managers vs. Acm Tactical Income | Amg Managers vs. Qs Global Equity |
| Aberdeen Gbl vs. Columbia Seligman Premium | Aberdeen Gbl vs. Aberdeen Global Fixed | Aberdeen Gbl vs. Aberdeen Equity A | Aberdeen Gbl vs. Aberdeen Multi Cap Equity |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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