Correlation Between Amg Managers and Leuthold Global

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

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

Diversification Opportunities for Amg Managers and Leuthold Global

0.29

Correlation Coefficient

Amg Managers  Leuthold Global

Modest diversification

The 3 months correlation between Amg and Leuthold is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global 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 Centersquare are associated (or correlated) with Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Amg Managers i.e., Amg Managers and Leuthold Global go up and down completely randomly.

Pair Corralation between Amg Managers and Leuthold Global

Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 0.94 times more return on investment than Leuthold Global. However, Amg Managers Centersquare is 1.06 times less risky than Leuthold Global. It trades about -0.06 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about -0.17 per unit of risk. If you would invest  1,232  in Amg Managers Centersquare on September 18, 2024 and sell it today you would lose (43.00) from holding Amg Managers Centersquare or give up 3.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Amg Managers Centersquare  vs.  Leuthold Global Fund

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 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.

Leuthold Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leuthold Global Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential 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 Amg Managers and Leuthold Global

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

The idea behind Amg Managers Centersquare and Leuthold Global Fund 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.

Check out your portfolio center.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..