Correlation Between Ambrus Core and Transamerica International
Can any of the company-specific risk be diversified away by investing in both Ambrus Core and Transamerica International 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 Transamerica International 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 Transamerica International Stock, you can compare the effects of market volatilities on Ambrus Core and Transamerica International 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 Transamerica International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Transamerica International.
Diversification Opportunities for Ambrus Core and Transamerica International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambrus and Transamerica is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Transamerica International Sto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica International 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 Transamerica International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica International has no effect on the direction of Ambrus Core i.e., Ambrus Core and Transamerica International go up and down completely randomly.
Pair Corralation between Ambrus Core and Transamerica International
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.22 times more return on investment than Transamerica International. However, Ambrus Core Bond is 4.46 times less risky than Transamerica International. It trades about 0.13 of its potential returns per unit of risk. Transamerica International Stock is currently generating about -0.01 per unit of risk. If you would invest 967.00 in Ambrus Core Bond on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Ambrus Core Bond or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Transamerica International Sto
Performance |
| Timeline |
| Ambrus Core Bond |
| Transamerica International |
Ambrus Core and Transamerica International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Transamerica International
The main advantage of trading using opposite Ambrus Core and Transamerica International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core position performs unexpectedly, Transamerica International 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 Transamerica International will offset losses from the drop in Transamerica International'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 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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