Correlation Between Fidelity Sai and Amg Managers

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

By analyzing existing cross correlation between Fidelity Sai Convertible and Amg Managers Centersquare, you can compare the effects of market volatilities on Fidelity Sai 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 Fidelity Sai with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Amg Managers.

Diversification Opportunities for Fidelity Sai and Amg Managers

-0.3

Correlation Coefficient

Fidelity Sai  Amg Managers

Very good diversification

The 3 months correlation between Fidelity and Amg is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Fidelity Sai 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 Fidelity Sai Convertible 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 Centersquare has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Amg Managers go up and down completely randomly.

Pair Corralation between Fidelity Sai and Amg Managers

Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.09 times more return on investment than Amg Managers. However, Fidelity Sai Convertible is 10.82 times less risky than Amg Managers. It trades about 0.43 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about -0.06 per unit of risk. If you would invest  1,046  in Fidelity Sai Convertible on November 29, 2024 and sell it today you would earn a total of  27.00  from holding Fidelity Sai Convertible or generate 2.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fidelity Sai Convertible  vs.  Amg Managers Centersquare

Fidelity Sai Convertible

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai Convertible are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Sai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers Centersquare

Risk-Adjusted Performance

Very Weak

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.

Pair Trading with Fidelity Sai and Amg Managers

The main advantage of trading using opposite Fidelity Sai and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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.

The idea behind Fidelity Sai Convertible and Amg Managers Centersquare 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.