Correlation Between Amg Managers and Oakmark Global
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Oakmark 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 Oakmark 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 Oakmark Global Fund, you can compare the effects of market volatilities on Amg Managers and Oakmark 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 Oakmark Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Oakmark Global.
Diversification Opportunities for Amg Managers and Oakmark Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Oakmark is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Oakmark Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Global 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 Oakmark Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Global has no effect on the direction of Amg Managers i.e., Amg Managers and Oakmark Global go up and down completely randomly.
Pair Corralation between Amg Managers and Oakmark Global
Assuming the 90 days horizon Amg Managers is expected to generate 2.65 times less return on investment than Oakmark Global. In addition to that, Amg Managers is 1.32 times more volatile than Oakmark Global Fund. It trades about 0.04 of its total potential returns per unit of risk. Oakmark Global Fund is currently generating about 0.13 per unit of volatility. If you would invest 3,368 in Oakmark Global Fund on September 13, 2024 and sell it today you would earn a total of 51.00 from holding Oakmark Global Fund or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Oakmark Global Fund
Performance |
| Timeline |
| Amg Managers Centersquare |
| Oakmark Global |
Amg Managers and Oakmark Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Oakmark Global
The main advantage of trading using opposite Amg Managers and Oakmark Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Oakmark 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 Oakmark Global will offset losses from the drop in Oakmark Global's long position.| Amg Managers vs. Realty Income | Amg Managers vs. Dynex Capital | Amg Managers vs. First Industrial Realty | Amg Managers vs. Healthcare Realty Trust |
| Oakmark Global vs. Ep Emerging Markets | Oakmark Global vs. Transamerica Emerging Markets | Oakmark Global vs. Western Asset Diversified | Oakmark Global vs. Barings Emerging Markets |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |