Correlation Between Ambrus Core and Shelton Green
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Shelton Green 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 Green 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 Green Alpha, you can compare the effects of market volatilities on Ambrus Core and Shelton Green 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 Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Shelton Green.
Diversification Opportunities for Ambrus Core and Shelton Green
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ambrus and Shelton is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Shelton Green Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Green Alpha 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 Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Green Alpha has no effect on the direction of Ambrus Core i.e., Ambrus Core and Shelton Green go up and down completely randomly.
Pair Corralation between Ambrus Core and Shelton Green
Assuming the 90 days horizon Ambrus Core is expected to generate 6.43 times less return on investment than Shelton Green. But when comparing it to its historical volatility, Ambrus Core Bond is 5.03 times less risky than Shelton Green. It trades about 0.1 of its potential returns per unit of risk. Shelton Green Alpha is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,299 in Shelton Green Alpha on August 29, 2024 and sell it today you would earn a total of 84.00 from holding Shelton Green Alpha or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Shelton Green Alpha
Performance |
| Timeline |
| Ambrus Core Bond |
| Shelton Green Alpha |
Ambrus Core and Shelton Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Shelton Green
The main advantage of trading using opposite Ambrus Core and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Shelton Green 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 Green will offset losses from the drop in Shelton Green's long position.| Ambrus Core vs. Permanent Portfolio Class | Ambrus Core vs. HUMANA INC | Ambrus Core vs. Aquagold International | Ambrus Core vs. Barloworld Ltd ADR |
| Shelton Green vs. Barings Active Short | Shelton Green vs. Ambrus Core Bond | Shelton Green vs. Nebraska Municipal Fund | Shelton Green vs. Touchstone Ohio Tax |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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