Correlation Between AMS Small and VanEck Multi
Can any of the company-specific risk be diversified away by investing in both AMS Small and VanEck Multi 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 AMS Small and VanEck Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMS Small Cap and VanEck Multi Asset Growth, you can compare the effects of market volatilities on AMS Small and VanEck Multi 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 AMS Small with a short position of VanEck Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMS Small and VanEck Multi.
Diversification Opportunities for AMS Small and VanEck Multi
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMS and VanEck is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AMS Small Cap and VanEck Multi Asset Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Multi Asset and AMS Small 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 AMS Small Cap are associated (or correlated) with VanEck Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Multi Asset has no effect on the direction of AMS Small i.e., AMS Small and VanEck Multi go up and down completely randomly.
Pair Corralation between AMS Small and VanEck Multi
Assuming the 90 days trading horizon AMS Small is expected to generate 4.79 times less return on investment than VanEck Multi. In addition to that, AMS Small is 2.89 times more volatile than VanEck Multi Asset Growth. It trades about 0.03 of its total potential returns per unit of risk. VanEck Multi Asset Growth is currently generating about 0.42 per unit of volatility. If you would invest 8,035 in VanEck Multi Asset Growth on September 2, 2024 and sell it today you would earn a total of 331.00 from holding VanEck Multi Asset Growth or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMS Small Cap vs. VanEck Multi Asset Growth
Performance |
| Timeline |
AMS Small and VanEck Multi Volatility Contrast
Predicted Return Density |
| Returns |
AMS Small Cap
Pair trading matchups for AMS Small
VanEck Multi Asset Growth
Pair trading matchups for VanEck Multi
Pair Trading with AMS Small and VanEck Multi
The main advantage of trading using opposite AMS Small and VanEck Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMS Small position performs unexpectedly, VanEck Multi 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 VanEck Multi will offset losses from the drop in VanEck Multi's long position.| AMS Small vs. Reinet Investments SCA | AMS Small vs. Sligro Food Group | AMS Small vs. SBM Offshore NV | AMS Small vs. Universal Music Group |
| VanEck Multi vs. iShares Core MSCI | VanEck Multi vs. BlackRock ESG Multi Asset | VanEck Multi vs. Pershing Square Holdings | VanEck Multi vs. ASML Holding NV |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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