Correlation Between Needham Aggressive and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Amg Managers 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 Needham Aggressive and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Amg Managers Emerging, you can compare the effects of market volatilities on Needham Aggressive and Amg Managers 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 Needham Aggressive with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Amg Managers.
Diversification Opportunities for Needham Aggressive and Amg Managers
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Needham and Amg is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Amg Managers Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Emerging and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Emerging has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Amg Managers go up and down completely randomly.
Pair Corralation between Needham Aggressive and Amg Managers
Assuming the 90 days horizon Needham Aggressive is expected to generate 1.03 times less return on investment than Amg Managers. In addition to that, Needham Aggressive is 1.31 times more volatile than Amg Managers Emerging. It trades about 0.09 of its total potential returns per unit of risk. Amg Managers Emerging is currently generating about 0.11 per unit of volatility. If you would invest 1,405 in Amg Managers Emerging on November 3, 2024 and sell it today you would earn a total of 41.00 from holding Amg Managers Emerging or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Amg Managers Emerging
Performance |
| Timeline |
| Needham Aggressive Growth |
| Amg Managers Emerging |
Needham Aggressive and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Amg Managers
The main advantage of trading using opposite Needham Aggressive and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Amg Managers vs. Stringer Growth Fund | Amg Managers vs. Mid Cap Growth | Amg Managers vs. Tfa Alphagen Growth | Amg Managers vs. T Rowe Price |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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