Correlation Between Counterpoint Tactical and Amg Frontier
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Amg Frontier 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 Counterpoint Tactical and Amg Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and Amg Frontier Small, you can compare the effects of market volatilities on Counterpoint Tactical and Amg Frontier 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 Counterpoint Tactical with a short position of Amg Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Amg Frontier.
Diversification Opportunities for Counterpoint Tactical and Amg Frontier
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Counterpoint and Amg is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and Amg Frontier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Frontier Small and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with Amg Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Frontier Small has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Amg Frontier go up and down completely randomly.
Pair Corralation between Counterpoint Tactical and Amg Frontier
Assuming the 90 days horizon Counterpoint Tactical is expected to generate 2.72 times less return on investment than Amg Frontier. But when comparing it to its historical volatility, Counterpoint Tactical Municipal is 6.15 times less risky than Amg Frontier. It trades about 0.12 of its potential returns per unit of risk. Amg Frontier Small is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Amg Frontier Small on August 31, 2024 and sell it today you would earn a total of 223.00 from holding Amg Frontier Small or generate 27.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Counterpoint Tactical Municipa vs. Amg Frontier Small
Performance |
| Timeline |
| Counterpoint Tactical |
| Amg Frontier Small |
Counterpoint Tactical and Amg Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Counterpoint Tactical and Amg Frontier
The main advantage of trading using opposite Counterpoint Tactical and Amg Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, Amg Frontier 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 Frontier will offset losses from the drop in Amg Frontier's long position.| Counterpoint Tactical vs. Vanguard Developed Markets | Counterpoint Tactical vs. Goldman Sachs Emerging | Counterpoint Tactical vs. Western Asset Diversified | Counterpoint Tactical vs. Ab All Market |
| Amg Frontier vs. Angel Oak Multi Strategy | Amg Frontier vs. Ashmore Emerging Markets | Amg Frontier vs. Pnc Emerging Markets | Amg Frontier vs. Franklin Emerging Market |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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