Correlation Between Amg Managers and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Amg Managers and Voya Solution 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 Voya Solution 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 Voya Solution Conservative, you can compare the effects of market volatilities on Amg Managers and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Voya Solution.
Diversification Opportunities for Amg Managers and Voya Solution
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMG and Voya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Voya Solution Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution Conser 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution Conser has no effect on the direction of Amg Managers i.e., Amg Managers and Voya Solution go up and down completely randomly.
Pair Corralation between Amg Managers and Voya Solution
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 2.98 times more return on investment than Voya Solution. However, Amg Managers is 2.98 times more volatile than Voya Solution Conservative. It trades about 0.03 of its potential returns per unit of risk. Voya Solution Conservative is currently generating about 0.07 per unit of risk. If you would invest 992.00 in Amg Managers Centersquare on March 26, 2025 and sell it today you would earn a total of 176.00 from holding Amg Managers Centersquare or generate 17.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Amg Managers Centersquare vs. Voya Solution Conservative
Performance |
Timeline |
Amg Managers Centersquare |
Voya Solution Conser |
Amg Managers and Voya Solution Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amg Managers and Voya Solution
The main advantage of trading using opposite Amg Managers and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution's long position.Amg Managers vs. Investec Emerging Markets | Amg Managers vs. Ep Emerging Markets | Amg Managers vs. Rbc Emerging Markets | Amg Managers vs. Mondrian Emerging Markets |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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