Correlation Between Aamg Funds and Amg Managers

Can any of the company-specific risk be diversified away by investing in both Aamg Funds 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 Aamg Funds and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aamg Funds Iv and Amg Managers Emerging, you can compare the effects of market volatilities on Aamg Funds 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 Aamg Funds with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamg Funds and Amg Managers.

Diversification Opportunities for Aamg Funds and Amg Managers

-0.53

Correlation Coefficient

Aamg Funds  Amg Managers

Excellent diversification

The 3 months correlation between Aamg and Amg is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aamg Funds Iv and Amg Managers Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Emerging and Aamg Funds 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 Aamg Funds Iv 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 Emerging has no effect on the direction of Aamg Funds i.e., Aamg Funds and Amg Managers go up and down completely randomly.

Pair Corralation between Aamg Funds and Amg Managers

Assuming the 90 days horizon Aamg Funds Iv is expected to under-perform the Amg Managers. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aamg Funds Iv is 2.12 times less risky than Amg Managers. The mutual fund trades about -0.41 of its potential returns per unit of risk. The Amg Managers Emerging is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,428  in Amg Managers Emerging on September 25, 2024 and sell it today you would earn a total of  13.00  from holding Amg Managers Emerging or generate 0.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Aamg Funds Iv  vs.  Amg Managers Emerging

Aamg Funds Iv

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aamg Funds Iv are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aamg Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Managers Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Amg Managers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aamg Funds and Amg Managers

The main advantage of trading using opposite Aamg Funds and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamg Funds 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.

The idea behind Aamg Funds Iv and Amg Managers Emerging pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.