Correlation Between Pioneer Municipal and FAM
Can any of the company-specific risk be diversified away by investing in both Pioneer Municipal and FAM 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 Pioneer Municipal and FAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Municipal High and FAM, you can compare the effects of market volatilities on Pioneer Municipal and FAM 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 Pioneer Municipal with a short position of FAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Municipal and FAM.
Diversification Opportunities for Pioneer Municipal and FAM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pioneer and FAM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Municipal High and FAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAM and Pioneer Municipal 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 Pioneer Municipal High are associated (or correlated) with FAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAM has no effect on the direction of Pioneer Municipal i.e., Pioneer Municipal and FAM go up and down completely randomly.
Pair Corralation between Pioneer Municipal and FAM
Considering the 90-day investment horizon Pioneer Municipal is expected to generate 4.14 times less return on investment than FAM. In addition to that, Pioneer Municipal is 1.05 times more volatile than FAM. It trades about 0.02 of its total potential returns per unit of risk. FAM is currently generating about 0.09 per unit of volatility. If you would invest 511.00 in FAM on October 21, 2024 and sell it today you would earn a total of 163.00 from holding FAM or generate 31.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 83.87% |
| Values | Daily Returns |
Pioneer Municipal High vs. FAM
Performance |
| Timeline |
| Pioneer Municipal High |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pioneer Municipal and FAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Municipal and FAM
The main advantage of trading using opposite Pioneer Municipal and FAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Municipal position performs unexpectedly, FAM 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 FAM will offset losses from the drop in FAM's long position.| Pioneer Municipal vs. New America High | Pioneer Municipal vs. DWS Municipal Income | Pioneer Municipal vs. RiverNorth Specialty Finance | Pioneer Municipal vs. Putnam Managed Municipal |
| FAM vs. Blackstone Gso Long | FAM vs. Blackstone Gso Senior | FAM vs. Nuveen Floating Rate | FAM vs. Pioneer Floating Rate |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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