Correlation Between Amg Managers and Amg Frontier
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Amg Frontier 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 Amg Frontier 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 Amg Frontier Small, you can compare the effects of market volatilities on Amg Managers and Amg Frontier 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 Amg Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Amg Frontier.
Diversification Opportunities for Amg Managers and Amg Frontier
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amg and Amg is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Emerging and Amg Frontier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Frontier Small 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 Amg Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Frontier Small has no effect on the direction of Amg Managers i.e., Amg Managers and Amg Frontier go up and down completely randomly.
Pair Corralation between Amg Managers and Amg Frontier
Assuming the 90 days horizon Amg Managers Emerging is expected to generate 1.43 times more return on investment than Amg Frontier. However, Amg Managers is 1.43 times more volatile than Amg Frontier Small. It trades about 0.01 of its potential returns per unit of risk. Amg Frontier Small is currently generating about -0.05 per unit of risk. If you would invest 1,445 in Amg Managers Emerging on September 25, 2024 and sell it today you would lose (4.00) from holding Amg Managers Emerging or give up 0.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Amg Managers Emerging vs. Amg Frontier Small
Performance |
Timeline |
Amg Managers Emerging |
Amg Frontier Small |
Amg Managers and Amg Frontier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amg Managers and Amg Frontier
The main advantage of trading using opposite Amg Managers and Amg Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Amg Frontier 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 Frontier will offset losses from the drop in Amg Frontier's 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 |
Amg Frontier vs. Amg Timessquare Mid | Amg Frontier vs. Amg Timessquare Small | Amg Frontier vs. Vanguard Institutional Total | Amg Frontier vs. Jpmorgan Intrepid Growth |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |