Correlation Between Amg Managers and Ariel International

Can any of the company-specific risk be diversified away by investing in both Amg Managers and Ariel International 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 Ariel International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amg Managers Pictet and Ariel International Fund, you can compare the effects of market volatilities on Amg Managers and Ariel International 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 Ariel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Ariel International.

Diversification Opportunities for Amg Managers and Ariel International

0.0

Correlation Coefficient

Amg Managers  Ariel International

Pay attention - limited upside

The 3 months correlation between Amg and Ariel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Pictet and Ariel International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ariel International 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 Pictet are associated (or correlated) with Ariel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ariel International has no effect on the direction of Amg Managers i.e., Amg Managers and Ariel International go up and down completely randomly.

Pair Corralation between Amg Managers and Ariel International

If you would invest  1,413  in Ariel International Fund on December 28, 2024 and sell it today you would earn a total of  187.00  from holding Ariel International Fund or generate 13.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amg Managers Pictet  vs.  Ariel International Fund

Amg Managers Pictet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amg Managers Pictet 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.

Ariel International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ariel International Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ariel International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amg Managers and Ariel International

The main advantage of trading using opposite Amg Managers and Ariel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers position performs unexpectedly, Ariel International 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 International will offset losses from the drop in Ariel International's long position.

The idea behind Amg Managers Pictet and Ariel International Fund 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.