Correlation Between Aamhimco Short and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Aamhimco Short and Growth Strategy 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 Aamhimco Short and Growth Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamhimco Short Duration and Growth Strategy Fund, you can compare the effects of market volatilities on Aamhimco Short and Growth Strategy 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 Aamhimco Short with a short position of Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamhimco Short and Growth Strategy.
Diversification Opportunities for Aamhimco Short and Growth Strategy
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aamhimco and GROWTH is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy and Aamhimco Short 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 Aamhimco Short Duration are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Aamhimco Short i.e., Aamhimco Short and Growth Strategy go up and down completely randomly.
Pair Corralation between Aamhimco Short and Growth Strategy
Assuming the 90 days horizon Aamhimco Short is expected to generate 33.75 times less return on investment than Growth Strategy. But when comparing it to its historical volatility, Aamhimco Short Duration is 4.16 times less risky than Growth Strategy. It trades about 0.04 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Growth Strategy Fund on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Growth Strategy Fund or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aamhimco Short Duration vs. Growth Strategy Fund
Performance |
| Timeline |
| Aamhimco Short Duration |
| Growth Strategy |
Aamhimco Short and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aamhimco Short and Growth Strategy
The main advantage of trading using opposite Aamhimco Short and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamhimco Short position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Aamhimco Short vs. Aamhimco Short Duration | Aamhimco Short vs. Aamhimco Short Duration | Aamhimco Short vs. Aambahl Gaynor Income | Aamhimco Short vs. Aambahl Gaynor Income |
| Growth Strategy vs. Sei Daily Income | Growth Strategy vs. Maryland Tax Free Bond | Growth Strategy vs. Artisan High Income | Growth Strategy vs. Angel Oak Financial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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