Correlation Between Amg Managers and Icm Small

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

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

Diversification Opportunities for Amg Managers and Icm Small

0.91

Correlation Coefficient

Amg Managers  Icm Small

Almost no diversification

The 3 months correlation between Amg and Icm is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Montag and Icm Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icm Small Pany 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 Montag are associated (or correlated) with Icm Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icm Small Pany has no effect on the direction of Amg Managers i.e., Amg Managers and Icm Small go up and down completely randomly.

Pair Corralation between Amg Managers and Icm Small

Assuming the 90 days horizon Amg Managers Montag is expected to generate 1.37 times more return on investment than Icm Small. However, Amg Managers is 1.37 times more volatile than Icm Small Pany. It trades about -0.12 of its potential returns per unit of risk. Icm Small Pany is currently generating about -0.2 per unit of risk. If you would invest  1,419  in Amg Managers Montag on December 2, 2024 and sell it today you would lose (151.00) from holding Amg Managers Montag or give up 10.64% of portfolio value over 90 days.

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

Amg Managers Montag  vs.  Icm Small Pany

Amg Managers Montag

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amg Managers Montag has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Icm Small Pany

Risk-Adjusted Performance

Very Weak

Over the last 90 days Icm Small Pany 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Amg Managers and Icm Small

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

The idea behind Amg Managers Montag and Icm Small Pany 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.