Correlation Between New America and Pioneer Floating
Can any of the company-specific risk be diversified away by investing in both New America and Pioneer Floating 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 New America and Pioneer Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New America High and Pioneer Floating Rate, you can compare the effects of market volatilities on New America and Pioneer Floating 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 New America with a short position of Pioneer Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of New America and Pioneer Floating.
Diversification Opportunities for New America and Pioneer Floating
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between New and Pioneer is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding New America High and Pioneer Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Floating Rate and New America 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 New America High are associated (or correlated) with Pioneer Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Floating Rate has no effect on the direction of New America i.e., New America and Pioneer Floating go up and down completely randomly.
Pair Corralation between New America and Pioneer Floating
Considering the 90-day investment horizon New America High is expected to generate 1.13 times more return on investment than Pioneer Floating. However, New America is 1.13 times more volatile than Pioneer Floating Rate. It trades about 0.19 of its potential returns per unit of risk. Pioneer Floating Rate is currently generating about 0.12 per unit of risk. If you would invest 809.00 in New America High on August 27, 2024 and sell it today you would earn a total of 13.00 from holding New America High or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New America High vs. Pioneer Floating Rate
Performance |
| Timeline |
| New America High |
| Pioneer Floating Rate |
New America and Pioneer Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New America and Pioneer Floating
The main advantage of trading using opposite New America and Pioneer Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New America position performs unexpectedly, Pioneer Floating 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 Pioneer Floating will offset losses from the drop in Pioneer Floating's long position.| New America vs. Pioneer Municipal High | New America vs. DWS Municipal Income | New America vs. RiverNorth Specialty Finance | New America vs. Putnam Managed Municipal |
| Pioneer Floating vs. Blackrock Floating Rate | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Blackrock Debt Strategies |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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