Correlation Between Ambrus Core and Stet California
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Stet California 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 Stet California 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 Stet California Municipal, you can compare the effects of market volatilities on Ambrus Core and Stet California 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 Stet California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Stet California.
Diversification Opportunities for Ambrus Core and Stet California
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ambrus and Stet is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Stet California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stet California Municipal 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 Stet California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stet California Municipal has no effect on the direction of Ambrus Core i.e., Ambrus Core and Stet California go up and down completely randomly.
Pair Corralation between Ambrus Core and Stet California
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 1.23 times more return on investment than Stet California. However, Ambrus Core is 1.23 times more volatile than Stet California Municipal. It trades about 0.12 of its potential returns per unit of risk. Stet California Municipal is currently generating about 0.08 per unit of risk. If you would invest 913.00 in Ambrus Core Bond on September 12, 2024 and sell it today you would earn a total of 87.00 from holding Ambrus Core Bond or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Stet California Municipal
Performance |
| Timeline |
| Ambrus Core Bond |
| Stet California Municipal |
Ambrus Core and Stet California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Stet California
The main advantage of trading using opposite Ambrus Core and Stet California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Stet California 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 Stet California will offset losses from the drop in Stet California's long position.| Ambrus Core vs. SCOR PK | Ambrus Core vs. Morningstar Unconstrained Allocation | Ambrus Core vs. Via Renewables | Ambrus Core vs. Bondbloxx ETF Trust |
| Stet California vs. Pace High Yield | Stet California vs. Ishares Municipal Bond | Stet California vs. Ambrus Core Bond | Stet California 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |