Correlation Between Resq Dynamic and Amg Managers

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

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

Diversification Opportunities for Resq Dynamic and Amg Managers

0.14

Correlation Coefficient

Resq Dynamic  Amg Managers

Average diversification

The 3 months correlation between RESQ and Amg is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Resq Dynamic Allocation 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 Resq Dynamic 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 Resq Dynamic Allocation 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 Resq Dynamic i.e., Resq Dynamic and Amg Managers go up and down completely randomly.

Pair Corralation between Resq Dynamic and Amg Managers

Assuming the 90 days horizon Resq Dynamic Allocation is expected to generate 0.62 times more return on investment than Amg Managers. However, Resq Dynamic Allocation is 1.6 times less risky than Amg Managers. It trades about 0.27 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.02 per unit of risk. If you would invest  1,089  in Resq Dynamic Allocation on October 24, 2024 and sell it today you would earn a total of  42.00  from holding Resq Dynamic Allocation or generate 3.86% return on investment over 90 days.

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

Resq Dynamic Allocation  vs.  Amg Managers Centersquare

Resq Dynamic Allocation

Risk-Adjusted Performance

7 of 100

OK

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

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 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.

Pair Trading with Resq Dynamic and Amg Managers

The main advantage of trading using opposite Resq Dynamic and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resq Dynamic 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 Resq Dynamic Allocation 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.