Correlation Between Amg Yacktman and Fpa Crescent
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and Fpa Crescent 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 Yacktman and Fpa Crescent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Fund and Fpa Crescent Fund, you can compare the effects of market volatilities on Amg Yacktman and Fpa Crescent 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 Yacktman with a short position of Fpa Crescent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Fpa Crescent.
Diversification Opportunities for Amg Yacktman and Fpa Crescent
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Fpa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Fund and Fpa Crescent Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Crescent and Amg Yacktman 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 Yacktman Fund are associated (or correlated) with Fpa Crescent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Crescent has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and Fpa Crescent go up and down completely randomly.
Pair Corralation between Amg Yacktman and Fpa Crescent
Assuming the 90 days horizon Amg Yacktman is expected to generate 1.25 times less return on investment than Fpa Crescent. But when comparing it to its historical volatility, Amg Yacktman Fund is 1.01 times less risky than Fpa Crescent. It trades about 0.19 of its potential returns per unit of risk. Fpa Crescent Fund is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,992 in Fpa Crescent Fund on October 20, 2024 and sell it today you would earn a total of 92.00 from holding Fpa Crescent Fund or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Fund vs. Fpa Crescent Fund
Performance |
| Timeline |
| Amg Yacktman |
| Fpa Crescent |
Amg Yacktman and Fpa Crescent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Fpa Crescent
The main advantage of trading using opposite Amg Yacktman and Fpa Crescent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, Fpa Crescent 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 Fpa Crescent will offset losses from the drop in Fpa Crescent's long position.| Amg Yacktman vs. Goldman Sachs Short | Amg Yacktman vs. Fidelity Advisor Gold | Amg Yacktman vs. Global Gold Fund | Amg Yacktman vs. James Balanced Golden |
| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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