Correlation Between Oakmark Global and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Oakmark Global 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 Oakmark Global and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Global Fund and Amg Managers Centersquare, you can compare the effects of market volatilities on Oakmark Global 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 Oakmark Global with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Global and Amg Managers.
Diversification Opportunities for Oakmark Global and Amg Managers
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oakmark and Amg is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Global Fund and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Oakmark Global 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 Oakmark Global Fund 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 Centersquare has no effect on the direction of Oakmark Global i.e., Oakmark Global and Amg Managers go up and down completely randomly.
Pair Corralation between Oakmark Global and Amg Managers
Assuming the 90 days horizon Oakmark Global is expected to generate 2.58 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Oakmark Global Fund is 1.04 times less risky than Amg Managers. It trades about 0.06 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,034 in Amg Managers Centersquare on September 13, 2024 and sell it today you would earn a total of 163.00 from holding Amg Managers Centersquare or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Oakmark Global Fund vs. Amg Managers Centersquare
Performance |
| Timeline |
| Oakmark Global |
| Amg Managers Centersquare |
Oakmark Global and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Global and Amg Managers
The main advantage of trading using opposite Oakmark Global and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Global 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.| Oakmark Global vs. Ep Emerging Markets | Oakmark Global vs. Transamerica Emerging Markets | Oakmark Global vs. Western Asset Diversified | Oakmark Global vs. Barings Emerging Markets |
| Amg Managers vs. Realty Income | Amg Managers vs. Dynex Capital | Amg Managers vs. First Industrial Realty | Amg Managers vs. Healthcare Realty Trust |
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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