Correlation Between Ambassador Fund and Avantis International
Can any of the company-specific risk be diversified away by investing in both Ambassador Fund and Avantis International 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 Ambassador Fund and Avantis International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambassador Fund and Avantis International Small, you can compare the effects of market volatilities on Ambassador Fund and Avantis International 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 Ambassador Fund with a short position of Avantis International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambassador Fund and Avantis International.
Diversification Opportunities for Ambassador Fund and Avantis International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ambassador and Avantis is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ambassador Fund and Avantis International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis International and Ambassador Fund 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 Ambassador Fund are associated (or correlated) with Avantis International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis International has no effect on the direction of Ambassador Fund i.e., Ambassador Fund and Avantis International go up and down completely randomly.
Pair Corralation between Ambassador Fund and Avantis International
Assuming the 90 days horizon Ambassador Fund is expected to generate 503.0 times less return on investment than Avantis International. But when comparing it to its historical volatility, Ambassador Fund is 4.1 times less risky than Avantis International. It trades about 0.0 of its potential returns per unit of risk. Avantis International Small is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,227 in Avantis International Small on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Avantis International Small or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambassador Fund vs. Avantis International Small
Performance |
| Timeline |
| Ambassador Fund |
| Avantis International |
Ambassador Fund and Avantis International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambassador Fund and Avantis International
The main advantage of trading using opposite Ambassador Fund and Avantis International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambassador Fund position performs unexpectedly, Avantis International 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 Avantis International will offset losses from the drop in Avantis International's long position.| Ambassador Fund vs. Ab Bond Inflation | Ambassador Fund vs. Morningstar Defensive Bond | Ambassador Fund vs. Inflation Adjusted Bond Fund | Ambassador Fund vs. Artisan High Income |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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