Correlation Between Aamhimco Short and Wellington Shields
Can any of the company-specific risk be diversified away by investing in both Aamhimco Short and Wellington Shields 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 Wellington Shields 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 Wellington Shields All Cap, you can compare the effects of market volatilities on Aamhimco Short and Wellington Shields 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 Wellington Shields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aamhimco Short and Wellington Shields.
Diversification Opportunities for Aamhimco Short and Wellington Shields
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aamhimco and Wellington is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Wellington Shields All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wellington Shields All 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 Wellington Shields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wellington Shields All has no effect on the direction of Aamhimco Short i.e., Aamhimco Short and Wellington Shields go up and down completely randomly.
Pair Corralation between Aamhimco Short and Wellington Shields
Assuming the 90 days horizon Aamhimco Short Duration is expected to generate 0.07 times more return on investment than Wellington Shields. However, Aamhimco Short Duration is 14.22 times less risky than Wellington Shields. It trades about 0.17 of its potential returns per unit of risk. Wellington Shields All Cap is currently generating about -0.04 per unit of risk. If you would invest 994.00 in Aamhimco Short Duration on October 21, 2024 and sell it today you would earn a total of 3.00 from holding Aamhimco Short Duration or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aamhimco Short Duration vs. Wellington Shields All Cap
Performance |
| Timeline |
| Aamhimco Short Duration |
| Wellington Shields All |
Aamhimco Short and Wellington Shields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aamhimco Short and Wellington Shields
The main advantage of trading using opposite Aamhimco Short and Wellington Shields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aamhimco Short position performs unexpectedly, Wellington Shields 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 Wellington Shields will offset losses from the drop in Wellington Shields' 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 |
| Wellington Shields vs. Virtus Seix Government | Wellington Shields vs. Intermediate Government Bond | Wellington Shields vs. Short Term Government Fund | Wellington Shields vs. Ab Government Exchange |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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