Correlation Between Amg Managers and New World
Can any of the company-specific risk be diversified away by investing in both Amg Managers and New World 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 New World 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 New World Fund, you can compare the effects of market volatilities on Amg Managers and New World 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 New World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and New World.
Diversification Opportunities for Amg Managers and New World
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amg and New is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and New World Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New World Fund 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 New World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New World Fund has no effect on the direction of Amg Managers i.e., Amg Managers and New World go up and down completely randomly.
Pair Corralation between Amg Managers and New World
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 1.56 times more return on investment than New World. However, Amg Managers is 1.56 times more volatile than New World Fund. It trades about 0.08 of its potential returns per unit of risk. New World Fund is currently generating about 0.08 per unit of risk. If you would invest 942.00 in Amg Managers Centersquare on September 12, 2024 and sell it today you would earn a total of 273.00 from holding Amg Managers Centersquare or generate 28.98% 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. New World Fund
Performance |
| Timeline |
| Amg Managers Centersquare |
| New World Fund |
Amg Managers and New World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and New World
The main advantage of trading using opposite Amg Managers and New World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, New World 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 New World will offset losses from the drop in New World's long position.| Amg Managers vs. T Rowe Price | Amg Managers vs. T Rowe Price | Amg Managers vs. T Rowe Price | Amg Managers vs. T Rowe Price |
| New World vs. Pender Real Estate | New World vs. Vy Clarion Real | New World vs. Amg Managers Centersquare | New World vs. Simt Real Estate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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