Correlation Between Cullen Emerging and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Cullen Emerging and Ambrus Core 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 Cullen Emerging and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen Emerging Markets and Ambrus Core Bond, you can compare the effects of market volatilities on Cullen Emerging and Ambrus Core 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 Cullen Emerging with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Emerging and Ambrus Core.
Diversification Opportunities for Cullen Emerging and Ambrus Core
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullen and Ambrus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Emerging Markets and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond and Cullen Emerging 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 Cullen Emerging Markets are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Cullen Emerging i.e., Cullen Emerging and Ambrus Core go up and down completely randomly.
Pair Corralation between Cullen Emerging and Ambrus Core
Assuming the 90 days horizon Cullen Emerging Markets is expected to under-perform the Ambrus Core. In addition to that, Cullen Emerging is 3.35 times more volatile than Ambrus Core Bond. It trades about -0.15 of its total potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.16 per unit of volatility. If you would invest 993.00 in Ambrus Core Bond on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Ambrus Core Bond or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Emerging Markets vs. Ambrus Core Bond
Performance |
| Timeline |
| Cullen Emerging Markets |
| Ambrus Core Bond |
Cullen Emerging and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Emerging and Ambrus Core
The main advantage of trading using opposite Cullen Emerging and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen Emerging position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Cullen Emerging vs. Vanguard Developed Markets | Cullen Emerging vs. Transamerica Emerging Markets | Cullen Emerging vs. Western Asset Diversified | Cullen Emerging vs. Shelton Emerging Markets |
| Ambrus Core vs. John Hancock Financial | Ambrus Core vs. Vanguard Financials Index | Ambrus Core vs. Transamerica Financial Life | Ambrus Core vs. Blackrock Financial Institutions |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |