Correlation Between Ambrus Core and American Funds
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and American Funds 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 American Funds 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 American Funds 2065, you can compare the effects of market volatilities on Ambrus Core and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and American Funds.
Diversification Opportunities for Ambrus Core and American Funds
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ambrus and American is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and American Funds 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2065 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2065 has no effect on the direction of Ambrus Core i.e., Ambrus Core and American Funds go up and down completely randomly.
Pair Corralation between Ambrus Core and American Funds
Assuming the 90 days horizon Ambrus Core is expected to generate 1.4 times less return on investment than American Funds. But when comparing it to its historical volatility, Ambrus Core Bond is 3.45 times less risky than American Funds. It trades about 0.16 of its potential returns per unit of risk. American Funds 2065 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,832 in American Funds 2065 on September 12, 2024 and sell it today you would earn a total of 13.00 from holding American Funds 2065 or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ambrus Core Bond vs. American Funds 2065
Performance |
| Timeline |
| Ambrus Core Bond |
| American Funds 2065 |
Ambrus Core and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and American Funds
The main advantage of trading using opposite Ambrus Core and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Ambrus Core vs. SCOR PK | Ambrus Core vs. Morningstar Unconstrained Allocation | Ambrus Core vs. Via Renewables | Ambrus Core vs. Bondbloxx ETF Trust |
| American Funds vs. Ambrus Core Bond | American Funds vs. California Bond Fund | American Funds vs. Versatile Bond Portfolio | American Funds vs. Ishares Municipal Bond |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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