Correlation Between Amg Timessquare and Baron International

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

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

Diversification Opportunities for Amg Timessquare and Baron International

0.87

Correlation Coefficient

Amg Timessquare  Baron International

Very poor diversification

The 3 months correlation between AMG and Baron is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Amg Timessquare International and Baron International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron International and Amg Timessquare 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 Timessquare International are associated (or correlated) with Baron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron International has no effect on the direction of Amg Timessquare i.e., Amg Timessquare and Baron International go up and down completely randomly.

Pair Corralation between Amg Timessquare and Baron International

Assuming the 90 days horizon Amg Timessquare International is expected to generate 0.96 times more return on investment than Baron International. However, Amg Timessquare International is 1.04 times less risky than Baron International. It trades about 0.14 of its potential returns per unit of risk. Baron International Growth is currently generating about 0.04 per unit of risk. If you would invest  1,418  in Amg Timessquare International on December 27, 2024 and sell it today you would earn a total of  105.00  from holding Amg Timessquare International or generate 7.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Amg Timessquare International  vs.  Baron International Growth

Amg Timessquare Inte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amg Timessquare International are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Amg Timessquare may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Baron International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Baron International Growth are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Baron International 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 Timessquare and Baron International

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

The idea behind Amg Timessquare International and Baron International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.