Correlation Between Enhanced Fixed and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Enhanced Fixed and Kellner Merger 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 Enhanced Fixed and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhanced Fixed Income and Kellner Merger Fund, you can compare the effects of market volatilities on Enhanced Fixed and Kellner Merger 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 Enhanced Fixed with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhanced Fixed and Kellner Merger.
Diversification Opportunities for Enhanced Fixed and Kellner Merger
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enhanced and Kellner is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Enhanced Fixed Income and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Enhanced Fixed 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 Enhanced Fixed Income are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Enhanced Fixed i.e., Enhanced Fixed and Kellner Merger go up and down completely randomly.
Pair Corralation between Enhanced Fixed and Kellner Merger
Assuming the 90 days horizon Enhanced Fixed Income is expected to generate 6.94 times more return on investment than Kellner Merger. However, Enhanced Fixed is 6.94 times more volatile than Kellner Merger Fund. It trades about 0.14 of its potential returns per unit of risk. Kellner Merger Fund is currently generating about 0.45 per unit of risk. If you would invest 996.00 in Enhanced Fixed Income on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Enhanced Fixed Income or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 27.78% |
| Values | Daily Returns |
Enhanced Fixed Income vs. Kellner Merger Fund
Performance |
| Timeline |
| Enhanced Fixed Income |
| Kellner Merger |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enhanced Fixed and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhanced Fixed and Kellner Merger
The main advantage of trading using opposite Enhanced Fixed and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhanced Fixed position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Enhanced Fixed vs. Allianzgi Convertible Income | Enhanced Fixed vs. Advent Claymore Convertible | Enhanced Fixed vs. Gabelli Convertible And | Enhanced Fixed vs. Lord Abbett Convertible |
| Kellner Merger vs. Transamerica Capital Growth | Kellner Merger vs. Rational Defensive Growth | Kellner Merger vs. Artisan Small Cap | Kellner Merger vs. Qs Defensive Growth |
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..
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