Correlation Between Americafirst Income and Ave Maria
Can any of the company-specific risk be diversified away by investing in both Americafirst Income and Ave Maria 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 Americafirst Income and Ave Maria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Income Fund and Ave Maria Bond, you can compare the effects of market volatilities on Americafirst Income and Ave Maria 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 Americafirst Income with a short position of Ave Maria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Income and Ave Maria.
Diversification Opportunities for Americafirst Income and Ave Maria
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Americafirst and Ave is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Income Fund and Ave Maria Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ave Maria Bond and Americafirst Income 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 Americafirst Income Fund are associated (or correlated) with Ave Maria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ave Maria Bond has no effect on the direction of Americafirst Income i.e., Americafirst Income and Ave Maria go up and down completely randomly.
Pair Corralation between Americafirst Income and Ave Maria
Assuming the 90 days horizon Americafirst Income Fund is expected to generate 3.11 times more return on investment than Ave Maria. However, Americafirst Income is 3.11 times more volatile than Ave Maria Bond. It trades about 0.04 of its potential returns per unit of risk. Ave Maria Bond is currently generating about 0.11 per unit of risk. If you would invest 402.00 in Americafirst Income Fund on December 2, 2024 and sell it today you would earn a total of 56.00 from holding Americafirst Income Fund or generate 13.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Americafirst Income Fund vs. Ave Maria Bond
Performance |
Timeline |
Americafirst Income |
Ave Maria Bond |
Americafirst Income and Ave Maria Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Americafirst Income and Ave Maria
The main advantage of trading using opposite Americafirst Income and Ave Maria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Income position performs unexpectedly, Ave Maria 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 Ave Maria will offset losses from the drop in Ave Maria's long position.Americafirst Income vs. High Yield Fund Investor | Americafirst Income vs. Pace High Yield | Americafirst Income vs. Mainstay High Yield | Americafirst Income vs. Gmo High Yield |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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