Correlation Between Amg Yacktman and The Jensen
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and The Jensen 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 The Jensen 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 The Jensen Portfolio, you can compare the effects of market volatilities on Amg Yacktman and The Jensen 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 The Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and The Jensen.
Diversification Opportunities for Amg Yacktman and The Jensen
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and The is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and The Jensen Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Portfolio 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 The Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Portfolio has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and The Jensen go up and down completely randomly.
Pair Corralation between Amg Yacktman and The Jensen
Assuming the 90 days horizon Amg Yacktman Focused is expected to generate 0.78 times more return on investment than The Jensen. However, Amg Yacktman Focused is 1.28 times less risky than The Jensen. It trades about 0.06 of its potential returns per unit of risk. The Jensen Portfolio is currently generating about 0.02 per unit of risk. If you would invest 1,842 in Amg Yacktman Focused on August 31, 2024 and sell it today you would earn a total of 311.00 from holding Amg Yacktman Focused or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Amg Yacktman Focused vs. The Jensen Portfolio
Performance |
| Timeline |
| Amg Yacktman Focused |
| Jensen Portfolio |
Amg Yacktman and The Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and The Jensen
The main advantage of trading using opposite Amg Yacktman and The Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, The Jensen 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 The Jensen will offset losses from the drop in The Jensen's long position.| Amg Yacktman vs. Oakmark International Fund | Amg Yacktman vs. Intrepid Endurance Fund | Amg Yacktman vs. HUMANA INC | Amg Yacktman vs. Aquagold International |
| The Jensen vs. Aquagold International | The Jensen vs. Morningstar Unconstrained Allocation | The Jensen vs. Thrivent High Yield | The Jensen vs. Via Renewables |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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