Correlation Between Mairs Power and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Mairs Power 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 Mairs Power and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Small and Amg Managers Skyline, you can compare the effects of market volatilities on Mairs Power 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 Mairs Power with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Amg Managers.
Diversification Opportunities for Mairs Power and Amg Managers
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mairs and Amg is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Small and Amg Managers Skyline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Skyline and Mairs Power 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 Mairs Power Small 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 Skyline has no effect on the direction of Mairs Power i.e., Mairs Power and Amg Managers go up and down completely randomly.
Pair Corralation between Mairs Power and Amg Managers
Assuming the 90 days horizon Mairs Power is expected to generate 3.43 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Mairs Power Small is 1.06 times less risky than Amg Managers. It trades about 0.03 of its potential returns per unit of risk. Amg Managers Skyline is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,689 in Amg Managers Skyline on October 6, 2025 and sell it today you would earn a total of 245.00 from holding Amg Managers Skyline or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Small vs. Amg Managers Skyline
Performance |
| Timeline |
| Mairs Power Small |
| Amg Managers Skyline |
Mairs Power and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Amg Managers
The main advantage of trading using opposite Mairs Power and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power 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.| Mairs Power vs. Dreyfus Opportunistic Small | Mairs Power vs. Hennessy Small Cap | Mairs Power vs. Nuveen Small Cap | Mairs Power vs. Nuveen Nwq Small Cap |
| Amg Managers vs. Dreyfus Opportunistic Small | Amg Managers vs. Nationwide Highmark Small | Amg Managers vs. Summit Global Investments | Amg Managers vs. Hennessy Small Cap |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |