Correlation Between Fisher Investments and Amg Managers

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

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

Diversification Opportunities for Fisher Investments and Amg Managers

0.93

Correlation Coefficient

Fisher Investments  Amg Managers

Almost no diversification

The 3 months correlation between Fisher and Amg is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Large Cap and Amg Managers Lmcg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Lmcg and Fisher Investments 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 Fisher Large Cap 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 Lmcg has no effect on the direction of Fisher Investments i.e., Fisher Investments and Amg Managers go up and down completely randomly.

Pair Corralation between Fisher Investments and Amg Managers

Assuming the 90 days horizon Fisher Large Cap is expected to under-perform the Amg Managers. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fisher Large Cap is 1.1 times less risky than Amg Managers. The mutual fund trades about -0.34 of its potential returns per unit of risk. The Amg Managers Lmcg is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest  1,947  in Amg Managers Lmcg on October 7, 2024 and sell it today you would lose (122.00) from holding Amg Managers Lmcg or give up 6.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Fisher Large Cap  vs.  Amg Managers Lmcg

Fisher Investments

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fisher Large Cap are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fisher Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amg Managers Lmcg

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amg Managers Lmcg are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Fisher Investments and Amg Managers

The main advantage of trading using opposite Fisher Investments and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments 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 Fisher Large Cap and Amg Managers Lmcg 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.