Correlation Between Amg Timessquare and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Amg Timessquare and Eagle Small 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 Amg Timessquare and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Timessquare Mid and Eagle Small Cap, you can compare the effects of market volatilities on Amg Timessquare and Eagle Small 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 Amg Timessquare with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Timessquare and Eagle Small.
Diversification Opportunities for Amg Timessquare and Eagle Small
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amg and Eagle is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amg Timessquare Mid and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap and Amg Timessquare 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 Amg Timessquare Mid are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Amg Timessquare i.e., Amg Timessquare and Eagle Small go up and down completely randomly.
Pair Corralation between Amg Timessquare and Eagle Small
Assuming the 90 days horizon Amg Timessquare Mid is expected to generate 0.74 times more return on investment than Eagle Small. However, Amg Timessquare Mid is 1.36 times less risky than Eagle Small. It trades about 0.08 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.04 per unit of risk. If you would invest 1,535 in Amg Timessquare Mid on September 12, 2024 and sell it today you would earn a total of 379.00 from holding Amg Timessquare Mid or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Timessquare Mid vs. Eagle Small Cap
Performance |
| Timeline |
| Amg Timessquare Mid |
| Eagle Small Cap |
Amg Timessquare and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Timessquare and Eagle Small
The main advantage of trading using opposite Amg Timessquare and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Timessquare position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Amg Timessquare vs. Total Return Bond | Amg Timessquare vs. T Rowe Price | Amg Timessquare vs. Victory Sycamore Small | Amg Timessquare vs. Mfs Emerging Markets |
| Eagle Small vs. Small Cap Stock | Eagle Small vs. Pgim Jennison Diversified | Eagle Small vs. Jhancock Diversified Macro | Eagle Small vs. Pioneer Diversified High |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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