Correlation Between Absolute Convertible and Logan Capital
Can any of the company-specific risk be diversified away by investing in both Absolute Convertible and Logan Capital 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 Absolute Convertible and Logan Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolute Convertible Arbitrage and Logan Capital Longshort, you can compare the effects of market volatilities on Absolute Convertible and Logan Capital 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 Absolute Convertible with a short position of Logan Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Convertible and Logan Capital.
Diversification Opportunities for Absolute Convertible and Logan Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Absolute and Logan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Convertible Arbitrage and Logan Capital Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Capital Longshort and Absolute Convertible 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 Absolute Convertible Arbitrage are associated (or correlated) with Logan Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Capital Longshort has no effect on the direction of Absolute Convertible i.e., Absolute Convertible and Logan Capital go up and down completely randomly.
Pair Corralation between Absolute Convertible and Logan Capital
If you would invest 1,144 in Absolute Convertible Arbitrage on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Absolute Convertible Arbitrage or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Absolute Convertible Arbitrage vs. Logan Capital Longshort
Performance |
| Timeline |
| Absolute Convertible |
| Logan Capital Longshort |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Absolute Convertible and Logan Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolute Convertible and Logan Capital
The main advantage of trading using opposite Absolute Convertible and Logan Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolute Convertible position performs unexpectedly, Logan Capital 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 Logan Capital will offset losses from the drop in Logan Capital's long position.| Absolute Convertible vs. Dunham Porategovernment Bond | Absolute Convertible vs. John Hancock Government | Absolute Convertible vs. Government Securities Fund | Absolute Convertible vs. Ab Government Exchange |
| Logan Capital vs. Advent Claymore Convertible | Logan Capital vs. Absolute Convertible Arbitrage | Logan Capital vs. Allianzgi Convertible Income | Logan Capital vs. Putnam Convertible Incm Gwth |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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