Correlation Between Amg Managers and Sa Real
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Sa Real 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 Sa Real 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 Sa Real Estate, you can compare the effects of market volatilities on Amg Managers and Sa Real 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 Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Sa Real.
Diversification Opportunities for Amg Managers and Sa Real
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and SAREX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Real Estate 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 Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of Amg Managers i.e., Amg Managers and Sa Real go up and down completely randomly.
Pair Corralation between Amg Managers and Sa Real
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.92 times more return on investment than Sa Real. However, Amg Managers Centersquare is 1.09 times less risky than Sa Real. It trades about 0.05 of its potential returns per unit of risk. Sa Real Estate is currently generating about -0.07 per unit of risk. If you would invest 1,207 in Amg Managers Centersquare on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Amg Managers Centersquare or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Sa Real Estate
Performance |
| Timeline |
| Amg Managers Centersquare |
| Sa Real Estate |
Amg Managers and Sa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Sa Real
The main advantage of trading using opposite Amg Managers and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Sa Real 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 Sa Real will offset losses from the drop in Sa Real'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 |
| Sa Real vs. Guggenheim Risk Managed | Sa Real vs. HUMANA INC | Sa Real vs. Barloworld Ltd ADR | Sa Real 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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