Correlation Between Amg Managers and Commonwealth Real

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Can any of the company-specific risk be diversified away by investing in both Amg Managers and Commonwealth Real 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 Commonwealth Real 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 Commonwealth Real Estate, you can compare the effects of market volatilities on Amg Managers and Commonwealth Real 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 Commonwealth Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Commonwealth Real.

Diversification Opportunities for Amg Managers and Commonwealth Real

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Amg and Commonwealth is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Commonwealth Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Real Estate 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 Commonwealth Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Real Estate has no effect on the direction of Amg Managers i.e., Amg Managers and Commonwealth Real go up and down completely randomly.

Pair Corralation between Amg Managers and Commonwealth Real

Assuming the 90 days horizon Amg Managers Centersquare is expected to under-perform the Commonwealth Real. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Centersquare is 1.1 times less risky than Commonwealth Real. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Commonwealth Real Estate is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,216  in Commonwealth Real Estate on October 7, 2025 and sell it today you would lose (7.00) from holding Commonwealth Real Estate or give up 0.32% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amg Managers Centersquare  vs.  Commonwealth Real Estate

 Performance 
       Timeline  
Amg Managers Centersquare 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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.
Commonwealth Real Estate 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Commonwealth Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Commonwealth Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers and Commonwealth Real Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amg Managers and Commonwealth Real

The main advantage of trading using opposite Amg Managers and Commonwealth Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Commonwealth Real 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 Commonwealth Real will offset losses from the drop in Commonwealth Real's long position.
The idea behind Amg Managers Centersquare and Commonwealth Real Estate 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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