Correlation Between Ambrus Core and Saat Market
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Saat Market 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 Saat Market 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 Saat Market Growth, you can compare the effects of market volatilities on Ambrus Core and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Saat Market.
Diversification Opportunities for Ambrus Core and Saat Market
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ambrus and Saat is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Ambrus Core i.e., Ambrus Core and Saat Market go up and down completely randomly.
Pair Corralation between Ambrus Core and Saat Market
Assuming the 90 days horizon Ambrus Core is expected to generate 1.41 times less return on investment than Saat Market. But when comparing it to its historical volatility, Ambrus Core Bond is 2.28 times less risky than Saat Market. It trades about 0.08 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,148 in Saat Market Growth on September 3, 2024 and sell it today you would earn a total of 156.00 from holding Saat Market Growth or generate 13.59% 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. Saat Market Growth
Performance |
| Timeline |
| Ambrus Core Bond |
| Saat Market Growth |
Ambrus Core and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Saat Market
The main advantage of trading using opposite Ambrus Core and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Ambrus Core vs. Virtus High Yield | Ambrus Core vs. Pgim High Yield | Ambrus Core vs. Pioneer High Yield | Ambrus Core vs. Alpine High Yield |
| Saat Market vs. California Bond Fund | Saat Market vs. Ambrus Core Bond | Saat Market vs. T Rowe Price | Saat Market vs. Versatile Bond Portfolio |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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