Correlation Between Amg Managers and Deutsche Croci

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

By analyzing existing cross correlation between Amg Managers Centersquare and Deutsche Croci Equity, you can compare the effects of market volatilities on Amg Managers and Deutsche Croci 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 Deutsche Croci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Deutsche Croci.

Diversification Opportunities for Amg Managers and Deutsche Croci

-0.04

Correlation Coefficient

Amg Managers  Deutsche Croci

Good diversification

The 3 months correlation between Amg and Deutsche is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Deutsche Croci Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Croci Equity 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 Centersquare are associated (or correlated) with Deutsche Croci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Croci Equity has no effect on the direction of Amg Managers i.e., Amg Managers and Deutsche Croci go up and down completely randomly.

Pair Corralation between Amg Managers and Deutsche Croci

Assuming the 90 days horizon Amg Managers Centersquare is expected to under-perform the Deutsche Croci. In addition to that, Amg Managers is 1.32 times more volatile than Deutsche Croci Equity. It trades about -0.02 of its total potential returns per unit of risk. Deutsche Croci Equity is currently generating about 0.13 per unit of volatility. If you would invest  5,740  in Deutsche Croci Equity on September 12, 2024 and sell it today you would earn a total of  293.00  from holding Deutsche Croci Equity or generate 5.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amg Managers Centersquare  vs.  Deutsche Croci Equity

Amg Managers Centersquare

Risk-Adjusted Performance

0 of 100

Very Weak

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

Deutsche Croci Equity

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Croci Equity are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Deutsche Croci is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amg Managers and Deutsche Croci

The main advantage of trading using opposite Amg Managers and Deutsche Croci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Deutsche Croci 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 Deutsche Croci will offset losses from the drop in Deutsche Croci's long position.

The idea behind Amg Managers Centersquare and Deutsche Croci Equity 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.