Correlation Between Cref Money and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Cref Money 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 Cref Money and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Amg Managers Special, you can compare the effects of market volatilities on Cref Money 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 Cref Money with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Amg Managers.
Diversification Opportunities for Cref Money and Amg Managers
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cref and Amg is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Amg Managers Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Special and Cref Money 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 Cref Money Market 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 Special has no effect on the direction of Cref Money i.e., Cref Money and Amg Managers go up and down completely randomly.
Pair Corralation between Cref Money and Amg Managers
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.02 times more return on investment than Amg Managers. However, Cref Money Market is 55.41 times less risky than Amg Managers. It trades about 0.98 of its potential returns per unit of risk. Amg Managers Special is currently generating about -0.11 per unit of risk. If you would invest 2,947 in Cref Money Market on September 26, 2024 and sell it today you would earn a total of 33.00 from holding Cref Money Market or generate 1.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cref Money Market vs. Amg Managers Special
Performance |
Timeline |
Cref Money Market |
Amg Managers Special |
Cref Money and Amg Managers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cref Money and Amg Managers
The main advantage of trading using opposite Cref Money and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money 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.Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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