Correlation Between Aam/himco Short and Global Gold
Can any of the company-specific risk be diversified away by investing in both Aam/himco Short and Global Gold 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 Aam/himco Short and Global Gold 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 Global Gold Fund, you can compare the effects of market volatilities on Aam/himco Short and Global Gold 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 Aam/himco Short with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam/himco Short and Global Gold.
Diversification Opportunities for Aam/himco Short and Global Gold
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aam/himco and Global is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Aam/himco 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 Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Aam/himco Short i.e., Aam/himco Short and Global Gold go up and down completely randomly.
Pair Corralation between Aam/himco Short and Global Gold
Assuming the 90 days horizon Aam/himco Short is expected to generate 114.96 times less return on investment than Global Gold. But when comparing it to its historical volatility, Aamhimco Short Duration is 11.35 times less risky than Global Gold. It trades about 0.05 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,193 in Global Gold Fund on November 6, 2024 and sell it today you would earn a total of 144.00 from holding Global Gold Fund or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aamhimco Short Duration vs. Global Gold Fund
Performance |
| Timeline |
| Aamhimco Short Duration |
| Global Gold Fund |
Aam/himco Short and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam/himco Short and Global Gold
The main advantage of trading using opposite Aam/himco Short and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam/himco Short position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Aam/himco Short vs. Voya Real Estate | Aam/himco Short vs. Rreef Property Trust | Aam/himco Short vs. Nexpoint Real Estate | Aam/himco Short vs. Vy Clarion Real |
| Global Gold vs. Massmutual Premier High | Global Gold vs. T Rowe Price | Global Gold vs. Artisan High Income | Global Gold vs. Pace High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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