Correlation Between State Street and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Master and Ambrus Core Bond, you can compare the effects of market volatilities on State Street 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 State Street with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Ambrus Core.
Diversification Opportunities for State Street and Ambrus Core
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Ambrus is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding State Street Master 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 State Street 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 State Street Master 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 State Street i.e., State Street and Ambrus Core go up and down completely randomly.
Pair Corralation between State Street and Ambrus Core
If you would invest 992.00 in Ambrus Core Bond on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Ambrus Core Bond or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
State Street Master vs. Ambrus Core Bond
Performance |
| Timeline |
| State Street Master |
| Ambrus Core Bond |
State Street and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Ambrus Core
The main advantage of trading using opposite State Street and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.| State Street vs. Ambrus Core Bond | State Street vs. Versatile Bond Portfolio | State Street vs. Franklin High Yield | State Street vs. The National Tax Free |
| Ambrus Core vs. Loomis Sayles Inflation | Ambrus Core vs. Simt Multi Asset Inflation | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Schwab Treasury Inflation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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