Correlation Between Strategic Asset and Ave Maria
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Ave Maria 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 Strategic Asset and Ave Maria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Ave Maria Bond, you can compare the effects of market volatilities on Strategic Asset and Ave Maria 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 Strategic Asset with a short position of Ave Maria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Ave Maria.
Diversification Opportunities for Strategic Asset and Ave Maria
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strategic and Ave is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Ave Maria Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ave Maria Bond and Strategic Asset 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 Strategic Asset Management are associated (or correlated) with Ave Maria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ave Maria Bond has no effect on the direction of Strategic Asset i.e., Strategic Asset and Ave Maria go up and down completely randomly.
Pair Corralation between Strategic Asset and Ave Maria
Assuming the 90 days horizon Strategic Asset Management is expected to generate 1.43 times more return on investment than Ave Maria. However, Strategic Asset is 1.43 times more volatile than Ave Maria Bond. It trades about 0.09 of its potential returns per unit of risk. Ave Maria Bond is currently generating about 0.09 per unit of risk. If you would invest 1,064 in Strategic Asset Management on September 2, 2024 and sell it today you would earn a total of 169.00 from holding Strategic Asset Management or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Ave Maria Bond
Performance |
| Timeline |
| Strategic Asset Mana |
| Ave Maria Bond |
Strategic Asset and Ave Maria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Ave Maria
The main advantage of trading using opposite Strategic Asset and Ave Maria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Ave Maria 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 Ave Maria will offset losses from the drop in Ave Maria's long position.| Strategic Asset vs. Prudential Short Duration | Strategic Asset vs. Virtus High Yield | Strategic Asset vs. Artisan High Income | Strategic Asset vs. Pace High Yield |
| Ave Maria vs. Fidelity Advisor Financial | Ave Maria vs. Icon Financial Fund | Ave Maria vs. Gabelli Global Financial | Ave Maria vs. John Hancock Financial |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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