Correlation Between High-yield Municipal and Anfield Universal
Can any of the company-specific risk be diversified away by investing in both High-yield Municipal and Anfield Universal 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 High-yield Municipal and Anfield Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Anfield Universal Fixed, you can compare the effects of market volatilities on High-yield Municipal and Anfield Universal 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 High-yield Municipal with a short position of Anfield Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and Anfield Universal.
Diversification Opportunities for High-yield Municipal and Anfield Universal
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between High-yield and Anfield is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Anfield Universal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Universal Fixed and High-yield Municipal 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 High Yield Municipal Fund are associated (or correlated) with Anfield Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Universal Fixed has no effect on the direction of High-yield Municipal i.e., High-yield Municipal and Anfield Universal go up and down completely randomly.
Pair Corralation between High-yield Municipal and Anfield Universal
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 4.68 times more return on investment than Anfield Universal. However, High-yield Municipal is 4.68 times more volatile than Anfield Universal Fixed. It trades about 0.13 of its potential returns per unit of risk. Anfield Universal Fixed is currently generating about 0.35 per unit of risk. If you would invest 889.00 in High Yield Municipal Fund on August 29, 2024 and sell it today you would earn a total of 10.00 from holding High Yield Municipal Fund or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Anfield Universal Fixed
Performance |
| Timeline |
| High Yield Municipal |
| Anfield Universal Fixed |
High-yield Municipal and Anfield Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and Anfield Universal
The main advantage of trading using opposite High-yield Municipal and Anfield Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal position performs unexpectedly, Anfield Universal 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 Anfield Universal will offset losses from the drop in Anfield Universal's long position.| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
| Anfield Universal vs. FlexShares Core Select | Anfield Universal vs. Anfield Equity Sector | Anfield Universal vs. WisdomTree Interest Rate |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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