Correlation Between Rreef Property and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Rreef Property and Amg Managers 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 Rreef Property and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rreef Property Trust and Amg Managers Centersquare, you can compare the effects of market volatilities on Rreef Property and Amg Managers 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 Rreef Property with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rreef Property and Amg Managers.
Diversification Opportunities for Rreef Property and Amg Managers
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rreef and Amg is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Rreef Property Trust and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Rreef Property 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 Rreef Property Trust are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Rreef Property i.e., Rreef Property and Amg Managers go up and down completely randomly.
Pair Corralation between Rreef Property and Amg Managers
Assuming the 90 days trading horizon Rreef Property is expected to generate 3.15 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Rreef Property Trust is 10.97 times less risky than Amg Managers. It trades about 0.29 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,125 in Amg Managers Centersquare on November 5, 2024 and sell it today you would earn a total of 20.00 from holding Amg Managers Centersquare or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rreef Property Trust vs. Amg Managers Centersquare
Performance |
| Timeline |
| Rreef Property Trust |
| Amg Managers Centersquare |
Rreef Property and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rreef Property and Amg Managers
The main advantage of trading using opposite Rreef Property and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rreef Property position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Rreef Property vs. Transamerica Capital Growth | Rreef Property vs. Rational Defensive Growth | Rreef Property vs. Growth Portfolio Class | Rreef Property vs. L Abbett Growth |
| Amg Managers vs. Transamerica Capital Growth | Amg Managers vs. Praxis Genesis Growth | Amg Managers vs. Qs Defensive Growth | Amg Managers vs. Upright Growth Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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