Correlation Between Ambrus Core and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Barings Emerging 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 Ambrus Core and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Barings Emerging Markets, you can compare the effects of market volatilities on Ambrus Core and Barings Emerging 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 Ambrus Core with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Barings Emerging.
Diversification Opportunities for Ambrus Core and Barings Emerging
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambrus and Barings is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Ambrus Core 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 Ambrus Core Bond are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Ambrus Core i.e., Ambrus Core and Barings Emerging go up and down completely randomly.
Pair Corralation between Ambrus Core and Barings Emerging
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.56 times more return on investment than Barings Emerging. However, Ambrus Core Bond is 1.78 times less risky than Barings Emerging. It trades about 0.14 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.06 per unit of risk. If you would invest 994.00 in Ambrus Core Bond on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Ambrus Core Bond or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Barings Emerging Markets
Performance |
| Timeline |
| Ambrus Core Bond |
| Barings Emerging Markets |
Ambrus Core and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Barings Emerging
The main advantage of trading using opposite Ambrus Core and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Ambrus Core vs. Virtus High Yield | Ambrus Core vs. Pgim High Yield | Ambrus Core vs. Pioneer High Yield | Ambrus Core vs. Alpine High Yield |
| Barings Emerging vs. Ab Small Cap | Barings Emerging vs. Ab Small Cap | Barings Emerging vs. Oklahoma College Savings | Barings Emerging vs. Champlain Small |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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