Correlation Between Aptus Collared and Opus Small
Can any of the company-specific risk be diversified away by investing in both Aptus Collared and Opus Small 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 Aptus Collared and Opus Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptus Collared Income and Opus Small Cap, you can compare the effects of market volatilities on Aptus Collared and Opus Small 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 Aptus Collared with a short position of Opus Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Collared and Opus Small.
Diversification Opportunities for Aptus Collared and Opus Small
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aptus and Opus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Collared Income and Opus Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus Small Cap and Aptus Collared 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 Aptus Collared Income are associated (or correlated) with Opus Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus Small Cap has no effect on the direction of Aptus Collared i.e., Aptus Collared and Opus Small go up and down completely randomly.
Pair Corralation between Aptus Collared and Opus Small
Given the investment horizon of 90 days Aptus Collared Income is expected to generate 0.62 times more return on investment than Opus Small. However, Aptus Collared Income is 1.61 times less risky than Opus Small. It trades about 0.12 of its potential returns per unit of risk. Opus Small Cap is currently generating about -0.15 per unit of risk. If you would invest 4,074 in Aptus Collared Income on November 18, 2024 and sell it today you would earn a total of 48.00 from holding Aptus Collared Income or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptus Collared Income vs. Opus Small Cap
Performance |
| Timeline |
| Aptus Collared Income |
| Opus Small Cap |
Aptus Collared and Opus Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Collared and Opus Small
The main advantage of trading using opposite Aptus Collared and Opus Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Collared position performs unexpectedly, Opus Small 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 Opus Small will offset losses from the drop in Opus Small's long position.| Aptus Collared vs. Aptus Drawdown Managed | Aptus Collared vs. Aptus Defined Risk | Aptus Collared vs. Opus Small Cap | Aptus Collared vs. Anfield Universal Fixed |
| Opus Small vs. Aptus Defined Risk | Opus Small vs. Aptus Collared Income | Opus Small vs. Aptus Drawdown Managed | Opus Small vs. RiverFront Dynamic Dividend |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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