Correlation Between Amg Managers and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Americafirst Large 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 Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Amg Managers and Americafirst Large 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 Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Americafirst Large.
Diversification Opportunities for Amg Managers and Americafirst Large
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amg and Americafirst is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Amg Managers i.e., Amg Managers and Americafirst Large go up and down completely randomly.
Pair Corralation between Amg Managers and Americafirst Large
Assuming the 90 days horizon Amg Managers is expected to generate 1.39 times less return on investment than Americafirst Large. In addition to that, Amg Managers is 1.28 times more volatile than Americafirst Large Cap. It trades about 0.04 of its total potential returns per unit of risk. Americafirst Large Cap is currently generating about 0.08 per unit of volatility. If you would invest 1,102 in Americafirst Large Cap on September 4, 2024 and sell it today you would earn a total of 424.00 from holding Americafirst Large Cap or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Americafirst Large Cap
Performance |
| Timeline |
| Amg Managers Centersquare |
| Americafirst Large Cap |
Amg Managers and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Americafirst Large
The main advantage of trading using opposite Amg Managers and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Amg Managers vs. The Fixed Income | Amg Managers vs. Multimedia Portfolio Multimedia | Amg Managers vs. Artisan Select Equity | Amg Managers vs. Ab Select Equity |
| Americafirst Large vs. Blackrock High Yield | Americafirst Large vs. Lord Abbett High | Americafirst Large vs. Pgim High Yield | Americafirst Large vs. Virtus High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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