Correlation Between Amg Managers and Johnson Opportunity
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Johnson Opportunity 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 Johnson Opportunity 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 Johnson Opportunity Fund, you can compare the effects of market volatilities on Amg Managers and Johnson Opportunity 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 Johnson Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Johnson Opportunity.
Diversification Opportunities for Amg Managers and Johnson Opportunity
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Johnson is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Johnson Opportunity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Opportunity 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 Johnson Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Opportunity has no effect on the direction of Amg Managers i.e., Amg Managers and Johnson Opportunity go up and down completely randomly.
Pair Corralation between Amg Managers and Johnson Opportunity
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.77 times more return on investment than Johnson Opportunity. However, Amg Managers Centersquare is 1.3 times less risky than Johnson Opportunity. It trades about -0.02 of its potential returns per unit of risk. Johnson Opportunity Fund is currently generating about -0.05 per unit of risk. If you would invest 1,144 in Amg Managers Centersquare on October 25, 2024 and sell it today you would lose (6.00) from holding Amg Managers Centersquare or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Johnson Opportunity Fund
Performance |
| Timeline |
| Amg Managers Centersquare |
| Johnson Opportunity |
Amg Managers and Johnson Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Johnson Opportunity
The main advantage of trading using opposite Amg Managers and Johnson Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Johnson Opportunity 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 Johnson Opportunity will offset losses from the drop in Johnson Opportunity's long position.| Amg Managers vs. Davenport Small Cap | Amg Managers vs. Global Diversified Income | Amg Managers vs. Madison Diversified Income | Amg Managers vs. Vy T Rowe |
| Johnson Opportunity vs. Arrow Dwa Balanced | Johnson Opportunity vs. Victory Tax Exempt Fund | Johnson Opportunity vs. Credit Suisse Floating | Johnson Opportunity vs. Rbb Fund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |