Correlation Between Rbb Fund and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Rbb Fund 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 Rbb Fund and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbb Fund Trust and Amg Managers Centersquare, you can compare the effects of market volatilities on Rbb Fund 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 Rbb Fund with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Amg Managers.
Diversification Opportunities for Rbb Fund and Amg Managers
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rbb and Amg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund Trust 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 Rbb Fund 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 Rbb Fund Trust 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 Rbb Fund i.e., Rbb Fund and Amg Managers go up and down completely randomly.
Pair Corralation between Rbb Fund and Amg Managers
Assuming the 90 days horizon Rbb Fund Trust is expected to generate 1.47 times more return on investment than Amg Managers. However, Rbb Fund is 1.47 times more volatile than Amg Managers Centersquare. It trades about -0.07 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about -0.14 per unit of risk. If you would invest 1,187 in Rbb Fund Trust on October 17, 2024 and sell it today you would lose (89.00) from holding Rbb Fund Trust or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbb Fund Trust vs. Amg Managers Centersquare
Performance |
| Timeline |
| Rbb Fund Trust |
| Amg Managers Centersquare |
Rbb Fund and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbb Fund and Amg Managers
The main advantage of trading using opposite Rbb Fund and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund 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.| Rbb Fund vs. Needham Small Cap | Rbb Fund vs. Franklin Small Cap | Rbb Fund vs. Glg Intl Small | Rbb Fund vs. Kinetics Small Cap |
| Amg Managers vs. Us Global Investors | Amg Managers vs. Rbb Fund Trust | Amg Managers vs. Legg Mason Global | Amg Managers vs. Federated Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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