Correlation Between Washington Mutual and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Washington Mutual and Ambrus Core 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 Washington Mutual and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Ambrus Core Bond, you can compare the effects of market volatilities on Washington Mutual and Ambrus Core 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 Washington Mutual with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Ambrus Core.
Diversification Opportunities for Washington Mutual and Ambrus Core
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Washington and Ambrus is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Washington Mutual i.e., Washington Mutual and Ambrus Core go up and down completely randomly.
Pair Corralation between Washington Mutual and Ambrus Core
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 3.46 times more return on investment than Ambrus Core. However, Washington Mutual is 3.46 times more volatile than Ambrus Core Bond. It trades about 0.14 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.14 per unit of risk. If you would invest 5,835 in Washington Mutual Investors on September 1, 2024 and sell it today you would earn a total of 768.00 from holding Washington Mutual Investors or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Washington Mutual Investors vs. Ambrus Core Bond
Performance |
| Timeline |
| Washington Mutual |
| Ambrus Core Bond |
Washington Mutual and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Ambrus Core
The main advantage of trading using opposite Washington Mutual and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Washington Mutual vs. Income Fund Of | Washington Mutual vs. New World Fund | Washington Mutual vs. American Mutual Fund | Washington Mutual vs. American Mutual Fund |
| Ambrus Core vs. Harbor Diversified International | Ambrus Core vs. Adams Diversified Equity | Ambrus Core vs. Western Asset Diversified | Ambrus Core vs. Fidelity Advisor Diversified |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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