Correlation Between Amg Yacktman and Intrepid Endurance
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and Intrepid Endurance 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 Intrepid Endurance 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 Intrepid Endurance Fund, you can compare the effects of market volatilities on Amg Yacktman and Intrepid Endurance 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 Intrepid Endurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Intrepid Endurance.
Diversification Opportunities for Amg Yacktman and Intrepid Endurance
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Intrepid is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Focused and Intrepid Endurance Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Endurance 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 Intrepid Endurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Endurance has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and Intrepid Endurance go up and down completely randomly.
Pair Corralation between Amg Yacktman and Intrepid Endurance
Assuming the 90 days horizon Amg Yacktman Focused is expected to generate 0.75 times more return on investment than Intrepid Endurance. However, Amg Yacktman Focused is 1.33 times less risky than Intrepid Endurance. It trades about 0.04 of its potential returns per unit of risk. Intrepid Endurance Fund is currently generating about 0.02 per unit of risk. If you would invest 1,911 in Amg Yacktman Focused on September 12, 2024 and sell it today you would earn a total of 194.00 from holding Amg Yacktman Focused or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Amg Yacktman Focused vs. Intrepid Endurance Fund
Performance |
| Timeline |
| Amg Yacktman Focused |
| Intrepid Endurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amg Yacktman and Intrepid Endurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Intrepid Endurance
The main advantage of trading using opposite Amg Yacktman and Intrepid Endurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, Intrepid Endurance 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 Intrepid Endurance will offset losses from the drop in Intrepid Endurance's long position.| Amg Yacktman vs. First Eagle Global | Amg Yacktman vs. Invesco International Growth | Amg Yacktman vs. Marketfield Fund Marketfield | Amg Yacktman vs. Ivy Asset Strategy |
| Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Intrepid Income Fund | Intrepid Endurance vs. Amg Yacktman Focused |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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