Correlation Between Ambrus Core and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Salient Tactical 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 Salient Tactical 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 Salient Tactical Plus, you can compare the effects of market volatilities on Ambrus Core and Salient Tactical 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 Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Salient Tactical.
Diversification Opportunities for Ambrus Core and Salient Tactical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambrus and Salient is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Salient Tactical Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Plus 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 Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Plus has no effect on the direction of Ambrus Core i.e., Ambrus Core and Salient Tactical go up and down completely randomly.
Pair Corralation between Ambrus Core and Salient Tactical
Assuming the 90 days horizon Ambrus Core is expected to generate 2.01 times less return on investment than Salient Tactical. But when comparing it to its historical volatility, Ambrus Core Bond is 3.26 times less risky than Salient Tactical. It trades about 0.1 of its potential returns per unit of risk. Salient Tactical Plus is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Salient Tactical Plus on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Salient Tactical Plus or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Salient Tactical Plus
Performance |
| Timeline |
| Ambrus Core Bond |
| Salient Tactical Plus |
Ambrus Core and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Salient Tactical
The main advantage of trading using opposite Ambrus Core and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Salient Tactical 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 Salient Tactical will offset losses from the drop in Salient Tactical'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 |
| Salient Tactical vs. Versatile Bond Portfolio | Salient Tactical vs. T Rowe Price | Salient Tactical vs. Ambrus Core Bond | Salient Tactical vs. Bbh Intermediate Municipal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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