Correlation Between Transamerica Capital and Access Capital
Can any of the company-specific risk be diversified away by investing in both Transamerica Capital and Access Capital 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 Transamerica Capital and Access Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Capital Growth and Access Capital Munity, you can compare the effects of market volatilities on Transamerica Capital and Access Capital 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 Transamerica Capital with a short position of Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Capital and Access Capital.
Diversification Opportunities for Transamerica Capital and Access Capital
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Transamerica and Access is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Capital Growth and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity and Transamerica Capital 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 Transamerica Capital Growth are associated (or correlated) with Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Transamerica Capital i.e., Transamerica Capital and Access Capital go up and down completely randomly.
Pair Corralation between Transamerica Capital and Access Capital
Assuming the 90 days horizon Transamerica Capital Growth is expected to generate 3.74 times more return on investment than Access Capital. However, Transamerica Capital is 3.74 times more volatile than Access Capital Munity. It trades about 0.34 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.04 per unit of risk. If you would invest 3,656 in Transamerica Capital Growth on November 2, 2024 and sell it today you would earn a total of 345.00 from holding Transamerica Capital Growth or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Capital Growth vs. Access Capital Munity
Performance |
| Timeline |
| Transamerica Capital |
| Access Capital Munity |
Transamerica Capital and Access Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Capital and Access Capital
The main advantage of trading using opposite Transamerica Capital and Access Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Capital position performs unexpectedly, Access Capital 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 Access Capital will offset losses from the drop in Access Capital's long position.| Transamerica Capital vs. Johcm Emerging Markets | Transamerica Capital vs. Siit Emerging Markets | Transamerica Capital vs. Ashmore Emerging Markets | Transamerica Capital vs. Doubleline Emerging Markets |
| Access Capital vs. Stone Ridge Diversified | Access Capital vs. Allianzgi Diversified Income | Access Capital vs. Fulcrum Diversified Absolute | Access Capital vs. Vy T Rowe |
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 CEOs Directory module to screen CEOs from public companies around the world.
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