Correlation Between Intrepid Capital and Amg Yacktman

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

By analyzing existing cross correlation between Intrepid Capital Fund and Amg Yacktman Focused, you can compare the effects of market volatilities on Intrepid Capital and Amg Yacktman 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 Intrepid Capital with a short position of Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrepid Capital and Amg Yacktman.

Diversification Opportunities for Intrepid Capital and Amg Yacktman

-0.22

Correlation Coefficient

Intrepid Capital  Amg Yacktman

Very good diversification

The 3 months correlation between Intrepid and Amg is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Intrepid Capital Fund and Amg Yacktman Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Focused and Intrepid Capital 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 Intrepid Capital Fund are associated (or correlated) with Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Focused has no effect on the direction of Intrepid Capital i.e., Intrepid Capital and Amg Yacktman go up and down completely randomly.

Pair Corralation between Intrepid Capital and Amg Yacktman

Assuming the 90 days horizon Intrepid Capital Fund is expected to generate 0.26 times more return on investment than Amg Yacktman. However, Intrepid Capital Fund is 3.92 times less risky than Amg Yacktman. It trades about -0.22 of its potential returns per unit of risk. Amg Yacktman Focused is currently generating about -0.24 per unit of risk. If you would invest  1,311  in Intrepid Capital Fund on October 10, 2024 and sell it today you would lose (36.00) from holding Intrepid Capital Fund or give up 2.75% of portfolio value over 90 days.

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

Intrepid Capital Fund  vs.  Amg Yacktman Focused

Intrepid Capital

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrepid Capital Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intrepid Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Yacktman Focused

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Yacktman Focused has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Intrepid Capital and Amg Yacktman

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

The idea behind Intrepid Capital Fund and Amg Yacktman Focused 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.