Correlation Between Amg Yacktman and Thompson Bond
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and Thompson Bond 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 Thompson Bond 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 Thompson Bond Fund, you can compare the effects of market volatilities on Amg Yacktman and Thompson Bond 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 Thompson Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Thompson Bond.
Diversification Opportunities for Amg Yacktman and Thompson Bond
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Thompson is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and Thompson Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thompson Bond 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 Thompson Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thompson Bond has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and Thompson Bond go up and down completely randomly.
Pair Corralation between Amg Yacktman and Thompson Bond
Assuming the 90 days horizon Amg Yacktman is expected to generate 1.62 times less return on investment than Thompson Bond. In addition to that, Amg Yacktman is 6.32 times more volatile than Thompson Bond Fund. It trades about 0.04 of its total potential returns per unit of risk. Thompson Bond Fund is currently generating about 0.36 per unit of volatility. If you would invest 1,000.00 in Thompson Bond Fund on August 29, 2024 and sell it today you would earn a total of 49.00 from holding Thompson Bond Fund or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Focused vs. Thompson Bond Fund
Performance |
| Timeline |
| Amg Yacktman Focused |
| Thompson Bond |
Amg Yacktman and Thompson Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Thompson Bond
The main advantage of trading using opposite Amg Yacktman and Thompson Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, Thompson Bond 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 Thompson Bond will offset losses from the drop in Thompson Bond's long position.| Amg Yacktman vs. Amg Yacktman Fund | Amg Yacktman vs. Permanent Portfolio Class | Amg Yacktman vs. Oakmark International Fund | Amg Yacktman vs. Intrepid Endurance Fund |
| Thompson Bond vs. Tcw Total Return | Thompson Bond vs. Amg Yacktman Focused | Thompson Bond vs. Fidelity Advisor Floating | Thompson Bond vs. Doubleline Total Return |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |