Correlation Between Amg Managers and Smallcap Growth
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Smallcap Growth 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 Smallcap Growth 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 Smallcap Growth Fund, you can compare the effects of market volatilities on Amg Managers and Smallcap Growth 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 Smallcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Smallcap Growth.
Diversification Opportunities for Amg Managers and Smallcap Growth
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amg and Smallcap is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Smallcap Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Growth 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 Smallcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Growth has no effect on the direction of Amg Managers i.e., Amg Managers and Smallcap Growth go up and down completely randomly.
Pair Corralation between Amg Managers and Smallcap Growth
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.72 times more return on investment than Smallcap Growth. However, Amg Managers Centersquare is 1.4 times less risky than Smallcap Growth. It trades about 0.17 of its potential returns per unit of risk. Smallcap Growth Fund is currently generating about 0.09 per unit of risk. If you would invest 996.00 in Amg Managers Centersquare on September 3, 2024 and sell it today you would earn a total of 244.00 from holding Amg Managers Centersquare or generate 24.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Smallcap Growth Fund
Performance |
| Timeline |
| Amg Managers Centersquare |
| Smallcap Growth |
Amg Managers and Smallcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Smallcap Growth
The main advantage of trading using opposite Amg Managers and Smallcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Smallcap Growth 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 Smallcap Growth will offset losses from the drop in Smallcap Growth's long position.| Amg Managers vs. Deutsche Health And | Amg Managers vs. Fidelity Advisor Health | Amg Managers vs. Blackrock Health Sciences | Amg Managers vs. Invesco Global Health |
| Smallcap Growth vs. Goldman Sachs Real | Smallcap Growth vs. Vanguard Reit Index | Smallcap Growth vs. Deutsche Real Estate | Smallcap Growth vs. Amg Managers Centersquare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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