Correlation Between Amg Managers and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Bny Mellon 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 Bny Mellon 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 Bny Mellon Municipal, you can compare the effects of market volatilities on Amg Managers and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Bny Mellon.
Diversification Opportunities for Amg Managers and Bny Mellon
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Bny is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Bny Mellon Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Municipal 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Municipal has no effect on the direction of Amg Managers i.e., Amg Managers and Bny Mellon go up and down completely randomly.
Pair Corralation between Amg Managers and Bny Mellon
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 4.62 times more return on investment than Bny Mellon. However, Amg Managers is 4.62 times more volatile than Bny Mellon Municipal. It trades about 0.05 of its potential returns per unit of risk. Bny Mellon Municipal is currently generating about 0.08 per unit of risk. If you would invest 984.00 in Amg Managers Centersquare on August 30, 2024 and sell it today you would earn a total of 263.00 from holding Amg Managers Centersquare or generate 26.73% 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. Bny Mellon Municipal
Performance |
| Timeline |
| Amg Managers Centersquare |
| Bny Mellon Municipal |
Amg Managers and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Bny Mellon
The main advantage of trading using opposite Amg Managers and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Amg Managers vs. Financial Industries Fund | Amg Managers vs. Bbh Intermediate Municipal | Amg Managers vs. Touchstone Ohio Tax | Amg Managers vs. Dws Government Money |
| Bny Mellon vs. HUMANA INC | Bny Mellon vs. Aquagold International | Bny Mellon vs. Barloworld Ltd ADR | Bny Mellon vs. Morningstar Unconstrained Allocation |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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