Correlation Between Amg Frontier and Ariel Focus
Can any of the company-specific risk be diversified away by investing in both Amg Frontier and Ariel Focus 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 Frontier and Ariel Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Frontier Small and Ariel Focus Fund, you can compare the effects of market volatilities on Amg Frontier and Ariel Focus 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 Frontier with a short position of Ariel Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Frontier and Ariel Focus.
Diversification Opportunities for Amg Frontier and Ariel Focus
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Ariel is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amg Frontier Small and Ariel Focus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ariel Focus Fund and Amg Frontier 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 Frontier Small are associated (or correlated) with Ariel Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ariel Focus Fund has no effect on the direction of Amg Frontier i.e., Amg Frontier and Ariel Focus go up and down completely randomly.
Pair Corralation between Amg Frontier and Ariel Focus
Assuming the 90 days horizon Amg Frontier Small is expected to generate 1.98 times more return on investment than Ariel Focus. However, Amg Frontier is 1.98 times more volatile than Ariel Focus Fund. It trades about 0.03 of its potential returns per unit of risk. Ariel Focus Fund is currently generating about 0.06 per unit of risk. If you would invest 799.00 in Amg Frontier Small on August 18, 2025 and sell it today you would earn a total of 21.00 from holding Amg Frontier Small or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Frontier Small vs. Ariel Focus Fund
Performance |
| Timeline |
| Amg Frontier Small |
| Ariel Focus Fund |
Amg Frontier and Ariel Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Frontier and Ariel Focus
The main advantage of trading using opposite Amg Frontier and Ariel Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Frontier position performs unexpectedly, Ariel Focus 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 Ariel Focus will offset losses from the drop in Ariel Focus' long position.| Amg Frontier vs. Ariel Focus Fund | Amg Frontier vs. Hennessy Bp Midstream | Amg Frontier vs. Simt Mid Cap | Amg Frontier vs. Simt Mid Cap |
| Ariel Focus vs. Amg Frontier Small | Ariel Focus vs. Hennessy Bp Midstream | Ariel Focus vs. Pcm Fund | Ariel Focus vs. Simt Mid 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |