Correlation Between Amg Yacktman and Utilities Fund
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and Utilities Fund 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 Utilities Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Focused and Utilities Fund Investor, you can compare the effects of market volatilities on Amg Yacktman and Utilities Fund 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 Utilities Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Utilities Fund.
Diversification Opportunities for Amg Yacktman and Utilities Fund
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amg and Utilities is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and Utilities Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Investor 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 Focused are associated (or correlated) with Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Investor has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and Utilities Fund go up and down completely randomly.
Pair Corralation between Amg Yacktman and Utilities Fund
Assuming the 90 days horizon Amg Yacktman is expected to generate 2.19 times less return on investment than Utilities Fund. But when comparing it to its historical volatility, Amg Yacktman Focused is 1.41 times less risky than Utilities Fund. It trades about 0.06 of its potential returns per unit of risk. Utilities Fund Investor is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,382 in Utilities Fund Investor on September 12, 2024 and sell it today you would earn a total of 454.00 from holding Utilities Fund Investor or generate 32.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Focused vs. Utilities Fund Investor
Performance |
| Timeline |
| Amg Yacktman Focused |
| Utilities Fund Investor |
Amg Yacktman and Utilities Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Utilities Fund
The main advantage of trading using opposite Amg Yacktman and Utilities Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, Utilities Fund 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 Utilities Fund will offset losses from the drop in Utilities Fund's long position.| Amg Yacktman vs. Amg Yacktman Fund | Amg Yacktman vs. Permanent Portfolio Class | Amg Yacktman vs. Oakmark International Fund | Amg Yacktman vs. Matthews Asia Dividend |
| Utilities Fund vs. Alpine Dynamic Dividend | Utilities Fund vs. The Gabelli Utilities | Utilities Fund vs. The Gabelli Equity | Utilities Fund vs. Hennessy Gas Utility |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |