Correlation Between Acm Dynamic and Cullen Enhanced
Can any of the company-specific risk be diversified away by investing in both Acm Dynamic and Cullen Enhanced 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 Acm Dynamic and Cullen Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Dynamic Opportunity and Cullen Enhanced Equity, you can compare the effects of market volatilities on Acm Dynamic and Cullen Enhanced 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 Acm Dynamic with a short position of Cullen Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Dynamic and Cullen Enhanced.
Diversification Opportunities for Acm Dynamic and Cullen Enhanced
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acm and Cullen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Acm Dynamic Opportunity and Cullen Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Enhanced Equity and Acm 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 Acm Dynamic Opportunity are associated (or correlated) with Cullen Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Enhanced Equity has no effect on the direction of Acm Dynamic i.e., Acm Dynamic and Cullen Enhanced go up and down completely randomly.
Pair Corralation between Acm Dynamic and Cullen Enhanced
Assuming the 90 days horizon Acm Dynamic Opportunity is expected to generate 1.32 times more return on investment than Cullen Enhanced. However, Acm Dynamic is 1.32 times more volatile than Cullen Enhanced Equity. It trades about 0.11 of its potential returns per unit of risk. Cullen Enhanced Equity is currently generating about -0.15 per unit of risk. If you would invest 2,173 in Acm Dynamic Opportunity on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Acm Dynamic Opportunity or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Acm Dynamic Opportunity vs. Cullen Enhanced Equity
Performance |
| Timeline |
| Acm Dynamic Opportunity |
| Cullen Enhanced Equity |
Acm Dynamic and Cullen Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Dynamic and Cullen Enhanced
The main advantage of trading using opposite Acm Dynamic and Cullen Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Dynamic position performs unexpectedly, Cullen Enhanced 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 Cullen Enhanced will offset losses from the drop in Cullen Enhanced's long position.| Acm Dynamic vs. Jennison Natural Resources | Acm Dynamic vs. Invesco Energy Fund | Acm Dynamic vs. Adams Natural Resources | Acm Dynamic vs. Energy Basic Materials |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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