Correlation Between Aig Government and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Aig Government 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 Aig Government and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Amg Managers Fairpointe, you can compare the effects of market volatilities on Aig Government 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 Aig Government with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Amg Managers.
Diversification Opportunities for Aig Government and Amg Managers
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Amg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe and Aig Government 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 Aig Government Money 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 Fairpointe has no effect on the direction of Aig Government i.e., Aig Government and Amg Managers go up and down completely randomly.
Pair Corralation between Aig Government and Amg Managers
Assuming the 90 days horizon Aig Government is expected to generate 6.83 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Aig Government Money is 4.45 times less risky than Amg Managers. It trades about 0.05 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,040 in Amg Managers Fairpointe on September 12, 2024 and sell it today you would earn a total of 546.00 from holding Amg Managers Fairpointe or generate 26.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Aig Government Money |
| Amg Managers Fairpointe |
Aig Government and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Amg Managers
The main advantage of trading using opposite Aig Government and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government 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.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
| Amg Managers vs. Schwab Treasury Money | Amg Managers vs. Cref Money Market | Amg Managers vs. Aig Government Money | Amg Managers vs. Money Market Obligations |
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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