Correlation Between Americafirst Large and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Americafirst Large 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 Americafirst Large and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Ambrus Core Bond, you can compare the effects of market volatilities on Americafirst Large 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 Americafirst Large with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Ambrus Core.
Diversification Opportunities for Americafirst Large and Ambrus Core
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Americafirst and Ambrus is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap 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 Americafirst Large 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 Americafirst Large Cap 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 Americafirst Large i.e., Americafirst Large and Ambrus Core go up and down completely randomly.
Pair Corralation between Americafirst Large and Ambrus Core
Assuming the 90 days horizon Americafirst Large Cap is expected to generate 6.22 times more return on investment than Ambrus Core. However, Americafirst Large is 6.22 times more volatile than Ambrus Core Bond. It trades about 0.39 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.14 per unit of risk. If you would invest 1,343 in Americafirst Large Cap on September 5, 2024 and sell it today you would earn a total of 122.00 from holding Americafirst Large Cap or generate 9.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. Ambrus Core Bond
Performance |
| Timeline |
| Americafirst Large Cap |
| Ambrus Core Bond |
Americafirst Large and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Ambrus Core
The main advantage of trading using opposite Americafirst Large and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large 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.| Americafirst Large vs. American Mutual Fund | Americafirst Large vs. Aqr Large Cap | Americafirst Large vs. M Large Cap | Americafirst Large vs. Vela Large Cap |
| Ambrus Core vs. Fundamental Large Cap | Ambrus Core vs. Americafirst Large Cap | Ambrus Core vs. Vela Large Cap | Ambrus Core vs. Pace Large Value |
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 Stocks Directory module to find actively traded stocks across global markets.
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