Correlation Between Amana Participation and Upright Assets
Can any of the company-specific risk be diversified away by investing in both Amana Participation and Upright Assets 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 Amana Participation and Upright Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amana Participation Fund and Upright Assets Allocation, you can compare the effects of market volatilities on Amana Participation and Upright Assets 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 Amana Participation with a short position of Upright Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amana Participation and Upright Assets.
Diversification Opportunities for Amana Participation and Upright Assets
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amana and Upright is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Amana Participation Fund and Upright Assets Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Assets Allocation and Amana Participation 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 Amana Participation Fund are associated (or correlated) with Upright Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Assets Allocation has no effect on the direction of Amana Participation i.e., Amana Participation and Upright Assets go up and down completely randomly.
Pair Corralation between Amana Participation and Upright Assets
Assuming the 90 days horizon Amana Participation Fund is expected to generate 0.05 times more return on investment than Upright Assets. However, Amana Participation Fund is 19.93 times less risky than Upright Assets. It trades about 0.38 of its potential returns per unit of risk. Upright Assets Allocation is currently generating about -0.05 per unit of risk. If you would invest 975.00 in Amana Participation Fund on December 4, 2024 and sell it today you would earn a total of 8.00 from holding Amana Participation Fund or generate 0.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amana Participation Fund vs. Upright Assets Allocation
Performance |
Timeline |
Amana Participation |
Upright Assets Allocation |
Amana Participation and Upright Assets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amana Participation and Upright Assets
The main advantage of trading using opposite Amana Participation and Upright Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amana Participation position performs unexpectedly, Upright Assets 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 Upright Assets will offset losses from the drop in Upright Assets' long position.Amana Participation vs. John Hancock Variable | Amana Participation vs. Putnam Global Health | Amana Participation vs. Hartford Healthcare Hls | Amana Participation vs. Deutsche Health And |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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