Correlation Between Growth Fund and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Ambrus Core Bond, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Ambrus Core.
Diversification Opportunities for Growth Fund and Ambrus Core
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growth and Ambrus is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of 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 Growth 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Ambrus Core go up and down completely randomly.
Pair Corralation between Growth Fund and Ambrus Core
Assuming the 90 days horizon Growth Fund Of is expected to generate 4.27 times more return on investment than Ambrus Core. However, Growth Fund is 4.27 times more volatile than Ambrus Core Bond. It trades about 0.14 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.11 per unit of risk. If you would invest 5,960 in Growth Fund Of on September 2, 2024 and sell it today you would earn a total of 2,304 from holding Growth Fund Of or generate 38.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Ambrus Core Bond
Performance |
| Timeline |
| Growth Fund |
| Ambrus Core Bond |
Growth Fund and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Ambrus Core
The main advantage of trading using opposite Growth Fund and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Capital World Growth | Growth Fund vs. American Balanced Fund |
| Ambrus Core vs. John Hancock Financial | Ambrus Core vs. Vanguard Financials Index | Ambrus Core vs. Transamerica Financial Life | Ambrus Core vs. Blackrock Financial Institutions |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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