Correlation Between Amg Yacktman and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman and NYSE Composite 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 Yacktman and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Special and NYSE Composite, you can compare the effects of market volatilities on Amg Yacktman and NYSE Composite 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 Yacktman with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and NYSE Composite.
Diversification Opportunities for Amg Yacktman and NYSE Composite
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amg and NYSE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Special and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Amg Yacktman 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 Yacktman Special are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and NYSE Composite go up and down completely randomly.
Pair Corralation between Amg Yacktman and NYSE Composite
Assuming the 90 days horizon Amg Yacktman Special is expected to under-perform the NYSE Composite. In addition to that, Amg Yacktman is 1.01 times more volatile than NYSE Composite. It trades about -0.01 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.04 per unit of volatility. If you would invest 1,570,961 in NYSE Composite on February 21, 2024 and sell it today you would earn a total of 262,601 from holding NYSE Composite or generate 16.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amg Yacktman Special vs. NYSE Composite
Performance |
Timeline |
Amg Yacktman and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Amg Yacktman Special
Pair trading matchups for Amg Yacktman
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Amg Yacktman and NYSE Composite
The main advantage of trading using opposite Amg Yacktman and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Amg Yacktman vs. Dfa International Value | Amg Yacktman vs. International Small Pany | Amg Yacktman vs. Us Large Cap | Amg Yacktman vs. Us Small Cap |
NYSE Composite vs. Coty Inc | NYSE Composite vs. Sun Country Airlines | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Kontoor Brands |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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