Correlation Between Ameritrans Capital and DWS Municipal
Can any of the company-specific risk be diversified away by investing in both Ameritrans Capital and DWS Municipal 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 Ameritrans Capital and DWS Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameritrans Capital Corp and DWS Municipal Income, you can compare the effects of market volatilities on Ameritrans Capital and DWS Municipal 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 Ameritrans Capital with a short position of DWS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameritrans Capital and DWS Municipal.
Diversification Opportunities for Ameritrans Capital and DWS Municipal
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ameritrans and DWS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrans Capital Corp and DWS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Municipal Income and Ameritrans Capital 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 Ameritrans Capital Corp are associated (or correlated) with DWS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Municipal Income has no effect on the direction of Ameritrans Capital i.e., Ameritrans Capital and DWS Municipal go up and down completely randomly.
Pair Corralation between Ameritrans Capital and DWS Municipal
If you would invest 937.00 in DWS Municipal Income on October 29, 2024 and sell it today you would earn a total of 8.00 from holding DWS Municipal Income or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Ameritrans Capital Corp vs. DWS Municipal Income
Performance |
| Timeline |
| Ameritrans Capital Corp |
| DWS Municipal Income |
Ameritrans Capital and DWS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameritrans Capital and DWS Municipal
The main advantage of trading using opposite Ameritrans Capital and DWS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameritrans Capital position performs unexpectedly, DWS Municipal 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 DWS Municipal will offset losses from the drop in DWS Municipal's long position.| Ameritrans Capital vs. Q2 Holdings | Ameritrans Capital vs. Cadence Design Systems | Ameritrans Capital vs. Emerson Radio | Ameritrans Capital vs. Glorywin Entertainment Group |
| DWS Municipal vs. Carlyle Group | DWS Municipal vs. Blue Owl Capital | DWS Municipal vs. TPG Inc | DWS Municipal vs. Patria Investments |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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