Correlation Between Amg Managers and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Dow Jones 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 Managers and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Emerging and Dow Jones Industrial, you can compare the effects of market volatilities on Amg Managers and Dow Jones 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 Managers with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Dow Jones.
Diversification Opportunities for Amg Managers and Dow Jones
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amg and Dow is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Emerging and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Amg Managers 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 Managers Emerging are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Amg Managers i.e., Amg Managers and Dow Jones go up and down completely randomly.
Pair Corralation between Amg Managers and Dow Jones
Assuming the 90 days horizon Amg Managers Emerging is expected to under-perform the Dow Jones. In addition to that, Amg Managers is 2.9 times more volatile than Dow Jones Industrial. It trades about -0.03 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.06 per unit of volatility. If you would invest 4,217,511 in Dow Jones Industrial on September 26, 2024 and sell it today you would earn a total of 112,192 from holding Dow Jones Industrial or generate 2.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amg Managers Emerging vs. Dow Jones Industrial
Performance |
Timeline |
Amg Managers and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Amg Managers Emerging
Pair trading matchups for Amg Managers
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Amg Managers and Dow Jones
The main advantage of trading using opposite Amg Managers and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Amg Managers vs. Amg Fq Long Short | Amg Managers vs. Amg Frontier Small | Amg Managers vs. Perritt Microcap Opportunities | Amg Managers vs. Amg Managers Skyline |
Dow Jones vs. Sabre Corpo | Dow Jones vs. Cannae Holdings | Dow Jones vs. Pekin Life Insurance | Dow Jones vs. Supercom |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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