Correlation Between AG Mortgage and Amg Managers

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

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

Diversification Opportunities for AG Mortgage and Amg Managers

-0.43

Correlation Coefficient

AG Mortgage  Amg Managers

Very good diversification

The 3 months correlation between MITT-PC and Amg is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment 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 AG Mortgage 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 AG Mortgage Investment 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 AG Mortgage i.e., AG Mortgage and Amg Managers go up and down completely randomly.

Pair Corralation between AG Mortgage and Amg Managers

Assuming the 90 days trading horizon AG Mortgage Investment is expected to generate 0.76 times more return on investment than Amg Managers. However, AG Mortgage Investment is 1.32 times less risky than Amg Managers. It trades about 0.14 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.03 per unit of risk. If you would invest  1,416  in AG Mortgage Investment on September 28, 2024 and sell it today you would earn a total of  1,084  from holding AG Mortgage Investment or generate 76.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

AG Mortgage Investment  vs.  Amg Managers Centersquare

AG Mortgage Investment

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AG Mortgage Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, AG Mortgage is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Amg Managers Centersquare

Risk-Adjusted Performance

0 of 100

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 latest unfluctuating performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with AG Mortgage and Amg Managers

The main advantage of trading using opposite AG Mortgage and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Mortgage 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 AG Mortgage Investment 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.