Correlation Between Amg Managers and Great Lakes

Can any of the company-specific risk be diversified away by investing in both Amg Managers and Great Lakes 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 Great Lakes 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 Great Lakes Disciplined, you can compare the effects of market volatilities on Amg Managers and Great Lakes 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 Great Lakes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Great Lakes.

Diversification Opportunities for Amg Managers and Great Lakes

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Correlation Coefficient

Amg Managers  Great Lakes

Pay attention - limited upside

The 3 months correlation between Amg and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Great Lakes Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Lakes Disciplined 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 Great Lakes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Lakes Disciplined has no effect on the direction of Amg Managers i.e., Amg Managers and Great Lakes go up and down completely randomly.

Pair Corralation between Amg Managers and Great Lakes

If you would invest  1,016  in Amg Managers Centersquare on October 11, 2024 and sell it today you would earn a total of  109.00  from holding Amg Managers Centersquare or generate 10.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.41%
Values	Daily Returns

Amg Managers Centersquare  vs.  Great Lakes Disciplined

Amg Managers Centersquare

Risk-Adjusted Performance

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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 weak 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.

Great Lakes Disciplined

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Great Lakes Disciplined has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Great Lakes is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amg Managers and Great Lakes

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

The idea behind Amg Managers Centersquare and Great Lakes Disciplined 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.