Correlation Between Ambrus Core and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Shelton 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 Shelton 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 Shelton Emerging Markets, you can compare the effects of market volatilities on Ambrus Core and Shelton 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Shelton Emerging.
Diversification Opportunities for Ambrus Core and Shelton Emerging
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ambrus and Shelton is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton 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 Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Ambrus Core i.e., Ambrus Core and Shelton Emerging go up and down completely randomly.
Pair Corralation between Ambrus Core and Shelton Emerging
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.2 times more return on investment than Shelton Emerging. However, Ambrus Core Bond is 4.96 times less risky than Shelton Emerging. It trades about 0.14 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about -0.02 per unit of risk. If you would invest 963.00 in Ambrus Core Bond on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Ambrus Core Bond or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ambrus Core Bond vs. Shelton Emerging Markets
Performance |
| Timeline |
| Ambrus Core Bond |
| Shelton Emerging Markets |
Ambrus Core and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Shelton Emerging
The main advantage of trading using opposite Ambrus Core and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Shelton 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Ambrus Core vs. Harbor Diversified International | Ambrus Core vs. Adams Diversified Equity | Ambrus Core vs. Western Asset Diversified | Ambrus Core vs. Fidelity Advisor Diversified |
| Shelton Emerging vs. Shelton Emerging Markets | Shelton Emerging vs. California Tax Free Income | Shelton Emerging vs. Shelton Funds | Shelton Emerging vs. Nasdaq 100 Index Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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