Correlation Between Amg Managers and Voya Global
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Voya Global 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 Voya Global 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 Voya Global Equity, you can compare the effects of market volatilities on Amg Managers and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Voya Global.
Diversification Opportunities for Amg Managers and Voya Global
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Voya is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Amg Managers i.e., Amg Managers and Voya Global go up and down completely randomly.
Pair Corralation between Amg Managers and Voya Global
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 1.01 times more return on investment than Voya Global. However, Amg Managers is 1.01 times more volatile than Voya Global Equity. It trades about -0.17 of its potential returns per unit of risk. Voya Global Equity is currently generating about -0.29 per unit of risk. If you would invest 1,207 in Amg Managers Centersquare on September 20, 2024 and sell it today you would lose (27.00) from holding Amg Managers Centersquare or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Voya Global Equity
Performance |
| Timeline |
| Amg Managers Centersquare |
| Voya Global Equity |
Amg Managers and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Voya Global
The main advantage of trading using opposite Amg Managers and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Amg Managers vs. Fidelity Advisor Technology | Amg Managers vs. Dreyfus Technology Growth | Amg Managers vs. Hennessy Technology Fund | Amg Managers vs. Towpath Technology |
| Voya Global vs. Dunham Real Estate | Voya Global vs. Amg Managers Centersquare | Voya Global vs. Simt Real Estate | Voya Global vs. Vy Clarion Real |
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 Stocks Directory module to find actively traded stocks across global markets.
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