Correlation Between Aam Select and James Alpha
Can any of the company-specific risk be diversified away by investing in both Aam Select and James Alpha 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 Select and James Alpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and James Alpha Structured, you can compare the effects of market volatilities on Aam Select and James Alpha 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 Select with a short position of James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and James Alpha.
Diversification Opportunities for Aam Select and James Alpha
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aam and James is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and James Alpha Structured in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Structured and Aam Select 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 Aam Select Income are associated (or correlated) with James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Structured has no effect on the direction of Aam Select i.e., Aam Select and James Alpha go up and down completely randomly.
Pair Corralation between Aam Select and James Alpha
Assuming the 90 days horizon Aam Select Income is expected to generate 2.43 times more return on investment than James Alpha. However, Aam Select is 2.43 times more volatile than James Alpha Structured. It trades about 0.27 of its potential returns per unit of risk. James Alpha Structured is currently generating about 0.07 per unit of risk. If you would invest 911.00 in Aam Select Income on November 28, 2024 and sell it today you would earn a total of 18.00 from holding Aam Select Income or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aam Select Income vs. James Alpha Structured
Performance |
| Timeline |
| Aam Select Income |
| James Alpha Structured |
Aam Select and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and James Alpha
The main advantage of trading using opposite Aam Select and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Aam Select vs. Tax Managed Large Cap | Aam Select vs. American Mutual Fund | Aam Select vs. Touchstone Large Cap | Aam Select vs. Blackrock Large Cap |
| James Alpha vs. Gmo High Yield | James Alpha vs. The Hartford World | James Alpha vs. Dreyfusstandish Global Fixed | James Alpha vs. Multisector Bond Sma |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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