Correlation Between Steward Select and Absolute Convertible
Can any of the company-specific risk be diversified away by investing in both Steward Select and Absolute Convertible 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 Steward Select and Absolute Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steward Select Bond and Absolute Convertible Arbitrage, you can compare the effects of market volatilities on Steward Select and Absolute Convertible 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 Steward Select with a short position of Absolute Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steward Select and Absolute Convertible.
Diversification Opportunities for Steward Select and Absolute Convertible
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steward and Absolute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steward Select Bond and Absolute Convertible Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Convertible and Steward Select 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 Steward Select Bond are associated (or correlated) with Absolute Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Convertible has no effect on the direction of Steward Select i.e., Steward Select and Absolute Convertible go up and down completely randomly.
Pair Corralation between Steward Select and Absolute Convertible
If you would invest 1,105 in Absolute Convertible Arbitrage on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Absolute Convertible Arbitrage or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steward Select Bond vs. Absolute Convertible Arbitrage
Performance |
| Timeline |
| Steward Select Bond |
| Absolute Convertible |
Steward Select and Absolute Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steward Select and Absolute Convertible
The main advantage of trading using opposite Steward Select and Absolute Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steward Select position performs unexpectedly, Absolute Convertible 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 Absolute Convertible will offset losses from the drop in Absolute Convertible's long position.| Steward Select vs. Steward Small Mid Cap | Steward Select vs. Steward Small Mid Cap | Steward Select vs. Steward Ered Call | Steward Select vs. Steward Ered Call |
| Absolute Convertible vs. Amg Managers Centersquare | Absolute Convertible vs. Dunham Real Estate | Absolute Convertible vs. Great West Real Estate | Absolute Convertible vs. Virtus Real Estate |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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