Correlation Between Pax High and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Pax High 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 Pax High and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pax High Yield and Amg Managers Emerging, you can compare the effects of market volatilities on Pax High 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 Pax High with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax High and Amg Managers.
Diversification Opportunities for Pax High and Amg Managers
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pax and Amg is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Pax High Yield 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 Pax High 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 Pax High Yield 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 Pax High i.e., Pax High and Amg Managers go up and down completely randomly.
Pair Corralation between Pax High and Amg Managers
Assuming the 90 days horizon Pax High Yield is expected to generate 0.06 times more return on investment than Amg Managers. However, Pax High Yield is 15.64 times less risky than Amg Managers. It trades about 0.2 of its potential returns per unit of risk. Amg Managers Emerging is currently generating about -0.07 per unit of risk. If you would invest 610.00 in Pax High Yield on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Pax High Yield or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pax High Yield vs. Amg Managers Emerging
Performance |
| Timeline |
| Pax High Yield |
| Amg Managers Emerging |
Pax High and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pax High and Amg Managers
The main advantage of trading using opposite Pax High and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax High 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.| Pax High vs. Nuveen Real Estate | Pax High vs. Amg Managers Centersquare | Pax High vs. Simt Real Estate | Pax High vs. Jhancock Real Estate |
| Amg Managers vs. Pax High Yield | Amg Managers vs. Prudential High Yield | Amg Managers vs. Fidelity Capital Income | Amg Managers vs. City National Rochdale |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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