Correlation Between Amg Renaissance and Blackrock Focus

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

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

Diversification Opportunities for Amg Renaissance and Blackrock Focus

0.27

Correlation Coefficient

Amg Renaissance  Blackrock Focus

Modest diversification

The 3 months correlation between Amg and Blackrock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amg Renaissance Large and Blackrock Focus Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Focus Growth and Amg Renaissance 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 Renaissance Large are associated (or correlated) with Blackrock Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Focus Growth has no effect on the direction of Amg Renaissance i.e., Amg Renaissance and Blackrock Focus go up and down completely randomly.

Pair Corralation between Amg Renaissance and Blackrock Focus

Assuming the 90 days horizon Amg Renaissance Large is expected to under-perform the Blackrock Focus. In addition to that, Amg Renaissance is 1.99 times more volatile than Blackrock Focus Growth. It trades about -0.27 of its total potential returns per unit of risk. Blackrock Focus Growth is currently generating about 0.0 per unit of volatility. If you would invest  801.00  in Blackrock Focus Growth on October 9, 2024 and sell it today you would lose (1.00) from holding Blackrock Focus Growth or give up 0.12% of portfolio value over 90 days.

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

Amg Renaissance Large  vs.  Blackrock Focus Growth

Amg Renaissance Large

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amg Renaissance Large 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.

Blackrock Focus Growth

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Focus Growth are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Blackrock Focus may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Amg Renaissance and Blackrock Focus

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

The idea behind Amg Renaissance Large and Blackrock Focus Growth 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.