Correlation Between Ambrus Core and State Street
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and State Street 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 State Street 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 State Street Master, you can compare the effects of market volatilities on Ambrus Core and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and State Street.
Diversification Opportunities for Ambrus Core and State Street
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambrus and State is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and State Street Master in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Master 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Master has no effect on the direction of Ambrus Core i.e., Ambrus Core and State Street go up and down completely randomly.
Pair Corralation between Ambrus Core and State Street
If you would invest 992.00 in Ambrus Core Bond on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Ambrus Core Bond or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ambrus Core Bond vs. State Street Master
Performance |
| Timeline |
| Ambrus Core Bond |
| State Street Master |
Ambrus Core and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and State Street
The main advantage of trading using opposite Ambrus Core and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Ambrus Core vs. Loomis Sayles Inflation | Ambrus Core vs. Simt Multi Asset Inflation | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Schwab Treasury Inflation |
| State Street vs. Ambrus Core Bond | State Street vs. Versatile Bond Portfolio | State Street vs. Franklin High Yield | State Street vs. The National Tax Free |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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