Correlation Between Amg Managers and Becker Value
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Becker Value 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 Becker Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Special and Becker Value Equity, you can compare the effects of market volatilities on Amg Managers and Becker Value 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 Becker Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Becker Value.
Diversification Opportunities for Amg Managers and Becker Value
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amg and Becker is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Special and Becker Value Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Becker Value 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 Special are associated (or correlated) with Becker Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Becker Value Equity has no effect on the direction of Amg Managers i.e., Amg Managers and Becker Value go up and down completely randomly.
Pair Corralation between Amg Managers and Becker Value
Assuming the 90 days horizon Amg Managers Special is expected to generate 1.12 times more return on investment than Becker Value. However, Amg Managers is 1.12 times more volatile than Becker Value Equity. It trades about 0.07 of its potential returns per unit of risk. Becker Value Equity is currently generating about -0.07 per unit of risk. If you would invest 7,960 in Amg Managers Special on September 13, 2025 and sell it today you would earn a total of 480.00 from holding Amg Managers Special or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Special vs. Becker Value Equity
Performance |
| Timeline |
| Amg Managers Special |
| Becker Value Equity |
Amg Managers and Becker Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Becker Value
The main advantage of trading using opposite Amg Managers and Becker Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Becker Value 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 Becker Value will offset losses from the drop in Becker Value's long position.| Amg Managers vs. Amg Managers Special | Amg Managers vs. Western Asset Investment | Amg Managers vs. Tcw Relative Value | Amg Managers vs. T Rowe Price |
| Becker Value vs. Western Asset Investment | Becker Value vs. Loomis Sayles Inflation | Becker Value vs. Amg Managers Special | Becker Value vs. Amg Managers Special |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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