Correlation Between Amg Yacktman and Catalystmillburn
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and Catalystmillburn 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 Catalystmillburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Special and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Amg Yacktman and Catalystmillburn 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 Catalystmillburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Catalystmillburn.
Diversification Opportunities for Amg Yacktman and Catalystmillburn
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Catalystmillburn is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Special and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Special are associated (or correlated) with Catalystmillburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and Catalystmillburn go up and down completely randomly.
Pair Corralation between Amg Yacktman and Catalystmillburn
Assuming the 90 days horizon Amg Yacktman Special is expected to under-perform the Catalystmillburn. In addition to that, Amg Yacktman is 1.53 times more volatile than Catalystmillburn Hedge Strategy. It trades about -0.01 of its total potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.12 per unit of volatility. If you would invest 3,640 in Catalystmillburn Hedge Strategy on November 3, 2024 and sell it today you would earn a total of 297.00 from holding Catalystmillburn Hedge Strategy or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Special vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Amg Yacktman Special |
| Catalystmillburn Hedge |
Amg Yacktman and Catalystmillburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Catalystmillburn
The main advantage of trading using opposite Amg Yacktman and Catalystmillburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, Catalystmillburn 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 Catalystmillburn will offset losses from the drop in Catalystmillburn's long position.| Amg Yacktman vs. Fulcrum Diversified Absolute | Amg Yacktman vs. Madison Diversified Income | Amg Yacktman vs. Diversified Income Fund | Amg Yacktman vs. Global Diversified Income |
| Catalystmillburn vs. Allianzgi Convertible Income | Catalystmillburn vs. Gabelli Convertible And | Catalystmillburn vs. Advent Claymore Convertible | Catalystmillburn vs. Columbia Convertible Securities |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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